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Well, once clearing the old database (manually deleting in old GUI) and deleting library1.db (using Mac OS X BTW), then restarting, I no longer get the update message. It recreates library1.db, but I still can not add any files.
I then went and added a file using the old GUI, deleted library1.db and started the new GUI. Same hang on updating. Although it "seems" to create the database, it's just that the message window never goes away.
Also, the windows that pop-up for adding files are different. It is not the same "finder" style it was previously, more of a old style window.
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