Where's all those "System updates can NOT cause hardware failure" guyz now??
You saw them in every post when people would complain about an update, etc. trashing their system.
Regardless of the circumstance, this update just proves 'em wrong.
Sounds like you don't have a problem connecting to XBOX LIVE.
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I do, HykCraft
The update will not let my Slim connect via wifi anymore, even though I've done nothing to the console ever (the faceplate hasn't even been removed).
Have you tried a different power outlet or power strip to see if that makes any different? How about trying to connect to the wireless network with the HDD removed?
If neither of these steps have resolved the issue, please give phone support a call at 800-4MY-XBOX.