Error when trying to upgrade ESXi host from 4.0 to 4.1

I'm trying to upgrade my ESXi host from 4.0 to 4.1.  The host is currently running version 4.0.0, 332073.  The host is running off an internal USB stick.  I have tried the vihostupdate and receive the same error message as when I try via vSphere Client Update Manager tab.  I have attached the log file from vSphere Update Manager.  Originally I setup a 4.0 vCenter server and couldn't even get the update ZIP file to import.  I then tried vCenter 4.1 and I got the update ZIP file to import, created a baseline for the upgrade, then tried the scan which failed with status "VMware vCenter Update Manager had an unknown error.  Check the Tasks and Events tab and log files for details.".
vmware-vum-server-log4cpp.log
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tsmit877IT ManagerAsked:
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bgoeringConnect With a Mentor Commented:
Personally I would do a clean install and reconfigure. You could also try the upgrade with the vihostupdate method outlined in the upgrade guide.
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bgoeringCommented:
Make sure you are doing all of tasks outlined in http://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC&externalId=1022140. The upgrade will definately not work with vCenter 4.0, you must upgrade using vCenter 4.1
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Danny McDanielClinical Systems AnalystCommented:
2011-02-22 09:14:45:397 'HostUpdateDepotManager' 4264 ERROR]  [scanHost20, 348] result for host: 192.168.0.4 (entity: host-9) shows error :
-----Result Begin (192.168.0.4)-----
<esxupdate-response>
  <version>1.16</version>
  <error errorClass="VisorSetupError">
    <errorCode>17</errorCode>
    <errorDesc>There was an error setting up ESXi installation destination
  It seems that host booted either from PXE or ISO image, esxupdate is not supported in this mode.</errorDesc>
  </error>
</esxupdate-response>

-----Result End (192.168.0.4)-----
[2011-02-22 09:14:45:398 'HostUpdateDepotManager' 4264 ERROR]  [scanHost20, 375] The host is booted from PXE or ISO image.
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tsmit877IT ManagerAuthor Commented:
I noticed that error message as well but I'm not sure how it relates to my situation.  Does this mean I can't upgrade?  Do I need to do a fresh install using 4.1 on this server and then somehow migrate my VM's over to it?
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Danny McDanielClinical Systems AnalystCommented:
Only thing I can think of is that the way the USB stick is being seen is causing a problem for the upgraded routine.  It's seeing the device as read-only or unable to find it like it normally would.

just curious...what hardware platform is it and did you supply your own USB stick or did the server come with it?
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tsmit877IT ManagerAuthor Commented:
It's a Dell PowerEdge 310. It has internal USB ports and I added my own USB stick and installed the free ESXi hypervisor and later bought VMWare essentials license.
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tsmit877IT ManagerAuthor Commented:
I gave up on this endeavor.  I ended up just installing a clean version of ESX 4.1 Update 1.  My VM's were not visible initially but I just used the file browser to add them back to the HOST so all is well now.
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