I'm sorry I have to repeat this but I wasn't able to find a solution up to now:
Somehow I'm unable to get this working...
I've installed the jailbreak before and usbnetworking with the additional sftp server module (all are working fine).
When I put the file update_launcher_1.0_install.bin into the /mnt/us folder (via an sftp connection) and restart the device I get the following error message during the restart:
The update was not successful
If you need assistance visit http://www.kindle.com/support
To resume using your Kindle, press the [Home] button.
UPDATE ERROR: 3
Do I have to put the .bin file in a different directory?
Note: I tried the same (copying to /mnt/us) without restarting the device and went to menu - settings - menu but the "Update Your Kindle" option is greyed out...
Should the folder hierarchy look like this (to get the usbnetworking and orientation entries):