To run the update with Windows XP, I believe you must have Microsoft ActiveSync software installed. The missing dll is a part of ActiveSync. So, if you have Vista, this is just another pain. When you fire up or borrow that old XP machine, you also have to install MS Activesync on it, if it doesnt have it already. You dont need to do a seperate sync with the XP machine though if you already synced with Vista to save your contacts etc. You can install activesync after your PPC is in bootloader mode and it will work fine. That is what I did.

I hope they fix the Vista issue though, because it is a pain.

I just went ahead and did the update. My phone seems to be working well. I had to use some old BTToggle program to get it to read audiobooks through my mono bluetooth headset. If anyone knows a better solution for that, let me know.