It worked for me too, first try...
I am in Norway.
I did it via a "slow" mini-pc with wireless network.
I downloaded New PC Studio (Click on Download NPS-button) via this link:
Support - Phone Firmware Update - Samsung Mobile
(I used XP, but I guess it works in Win7 if it is run in Admin-mode? Right click on the exe, and chose run as admin, or maybe compatibility-mode?)
Switched off phone, removed sim and storage-card.
The phone was fully charged.
I was sure that Mass storage was set to off in the settings on the phone. If not, the PC will not find the phone, and there is only an USB-error.
Then I was able to find the phone in NPS when switching on the phone and connecting it.
There was a message popping up that there were an upgrade available.
I clicked it, clicked on Update unit-tab, found the phone and clicked next, etc.
Upgrade was a breeze, took only 15+ mins. or so.
The info on the phone after upgrade was:
Firmvare Version: 2.1-Update 1
Baseband version:
i570EXXJC1
Kernel version: 2.6.29
root@se-611#2
Build number
ECLAIR.XXJCF
It is fast and snappy, but haven't tested any big programs, yet.