Posted By: J242(98.232.38.246) Date: Thursday, 10 July 2008, at 10:13 p.m.
Sheesh, it took me a bit to figure it out as it's not mentioned in any of the articles I've seen but if you download the update directly the .ipsw.zip file automatically sets itself as a folder. In order to find the downloaded zip in order to remove the.zip extension and target it to install you have to check the trash can. The trash can? Really? Oh well.
From there, it was as easy as Option clicking on "Check for updates" in iTunes 7.7, targeting the ipsw file and away it goes! I've downloaded a bunch of apps, can't wait to try 'em out! :D