Here are some other ways you can update ur console:
Copy the Update to a USB Flash Drive
If you don't have an Xbox LIVE account or have a slow Internet connection, using a USB flash drive is a good option.
Note: The USB flash drive must use the FAT32 file system.
Update using a USB flash drive:
1. Connect your USB flash drive to a USB port on your computer.
2. Click here to begin downloading the update folder. Save it as "$SystemUpdate9199.zip" anywhere on your computer.
3. Unzip the File.
4. Copy the contents from the unzipped folder onto the root of your flash drive.
5. Safely remove the flash drive from your computer and plug it into a USB port on your Xbox 360 console. If your console is on, turn it off, then back on. The update program will start automatically.
6. Select Yes, update now. When you see the new dashboard, you're done.
Burn a DVD or CD
Your other option is to download a file from Xbox.com and burn a DVD or CD. Use this method if you don't have your console connected to broadband, or if you use a dialup connection to the Internet. You could even do this at a friend's house who has a broadband Internet connection and a DVD or CD burner.
To create an update disc you need the following:
* A DVD or CD burner.
* A blank, writeable DVD or CD.
* The update file from Xbox.com.
This procedure involves burning the DVD or CD by using Microsoft Windows DVD or CD burning software. If you're using third-party CD/DVD writing software, follow the instructions for creating a data disc.
The same steps apply whether burning a CD or a DVD.
To create a DVD or CD:
1. Click here to begin downloading the update folder. Save it as "$SystemUpdate9199.zip" anywhere on your computer.
2. Place a blank disc in your burner.
From Windows Explorer, select Open Writable CD Folder Using Windows Explorer or open the CD drive icon.
3. Open (double click) the zipped $SystemUpdate.zip folder and drag the contents of the zipped folder to the root of the CD Folder. If the CD write window doesn't open by default, drag and drop the folder onto the CD/DVD RW drive.
Note
If you are using an earlier version of Windows you will need to open the file using a separate utility (for example, WinZip).
4. In the Explorer window, click Write files to CD from the CD writing tasks or right-click the CD/DVD RW drive and select Write these files to CD.
Caution
The update filename and folder structure must be intact for the update to run properly.
5. Follow the steps in the CD wizard.
When you are finished with the wizard, the CD will eject. Your CD is ready.
To update the console:
1. Place the CD in the Xbox 360 console.
2. Power cycle the Xbox 360 console.
3. The update program will start automatically. Select Yes, update now and press A.
4. Wait for the update to complete.
5. When the console reboots, you're done.