Auto Update is simply broken, it never worked on both of my devices (Mini and Nano). Manual Update works perfect - just do as CFIRick wrote a few days ago.
This should have been mentioned in the manual - or be fixed soon. Could be that it's in there now, but since you've taken months to come up with a version that I'd call a first impression for the reviewers, I'm not gonna have closer look into this crap very soon. : (