Unable to Update Applications

[Gehangin]

BB 9900
Desktop Software 6.1
When I connect via USB, I am able to sync and backup with no problem.
When I click on the "Applications" link (on the left), the programs goes into "Loading applications from the device" which takes quite a while, but after about 4 minutes does indeed show a list of applications.
So I see there an "Update" under "System Software" - all good.
On the bottom part of the window, under "Application Summary" I see "Blackberry 7.0.0 System Software" with "Pending Action" of "Update". I click "Apply" in the bottom right corner and then:
Connect to device, backup data, then it says "download device software" and then "turning on device radio" - and then it just closes, it just stops. Then goes right back to "Loading applications from device" and puts me right back where I started - with the same update still showing.
I have reinstalled the Desktop Software program. I have deleted vendor.xml.
What gives? What do I do?

[Gehangin]

Hi again . . . sorry to bump this up, but I have searched hi and wide and found no information.
Can anyone shed some light for me?
I am able to backup and sync data - just can't use the "update applications". It gets to the "turning on device radio" and then just goes back to the begining (listing current applications and available updates).
Note that this is only happening with my new 9900. My other BB devices (wife's and a co-workers) all "update applications" just fine.
Thanks for your help.