and when u transfer the update.zip file to your droid root DO NOT put.zip at the end because by nature the association is already built into the file.
This is not categorically true. By default Windows operates in what I call "dummy mode" and hides your file extensions from you. This is a horrible idea for more reasons than I care to type. To disable this bit of Windows idiocy, see
this post. At least that's how you do it in XP. If Windows Vista/7, etc. is different I'm sure you can Google how to unhide file extensions.
I think I may make that Step #1 of every procedure that involves an update.zip file -- "be sure your Windows is not configured to hide file extensions".