did you ever use one of the 10 or 20 different anti-update homebrews?
some hide the update icons so they cant be selected. others tweak an address so that when they're launched, the update is terminated and you receive an error.
you should know if you've done this though. if you did do it and don't remember doing it, then you must've hit your head pretty hard
edit:
make sure "update" is in all caps
^make sure it's in the GAME folder, and NOT GAME(###)
make sure game folder kernel is @ your current firmware version and NOT 1.50
try deleting the update and re-downloading if you've done the above and still doesn't work.
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