I had the same problem, but after doing a hard reset and before installing any 3rd party programs I was able to activesync USB without a problem. The update requires you to make a hard reset prior to installing the update. If your unit reacts like mine this should allow you to Sync via USB to install the update.
After installing the update and re-installing all of my programs I can no longer sync USB and have reverted back to syncing BT.

bdaved