Yeah, mine is currently stuck (?) during the update, with a black rectangle covering the top part of the screen, where I would otherwise be able to read off the download and install progress. Gonna wait a few minutes to see what happens.
ED.: sorry, relevant further detail, since I did finally manage to get it to work:
(I'm on Mac OS 10.7, my Kobo Glo
First attempt: WIFI:
1. turned on WIFI on Glo, tapped "Sync" icon.
2. Saw message that software is downloading.
3. Now see "echo" of text "downloading software 100%" within black rectangle.
4. Kobo wouldn't respond to touch or power button, so restarted using pinhole.
Second attempt: Kobo Desktop:
5. Connected Glo to Mac via USB, opened Kobo desktop, which prompted to download update of desktop app.
6. Installed desktop update (i.e. replaced app with that from disk image)
7. Restarted Kobo desktop, waited for automatic sync of library.
8. Can't find any option for desktop software to download & install firmware. Nothing except eject the device. Hmm. Maybe this only works under Windows. Bummer.
third attempt:
9. Downloaded .zip file from Developers' corner (
here)
10. Unzipped archive & copied contents to Glo root directory.
11. Ejected Glo from Mac, powered Glo off and on again.
12. Didn't update anything. Nothing happened. Glo works, but still on 2.3.1
13.

14. Plugged Glo back into Mac to check data on root. Yeah, it's there.
15. Ejected Glo, turned it off & ejected external SD card for good measure, turned it on again. Still 2.3.1.
fourth attempt: WIFI sync #2:
16. Attempt sync (again) via WIFI.
17. Downloads & prompts to "install now?"

18. Updating - Mise à jour - Aktualisiere - (&c.) ...
19. Gosh, it worked.
Can't explain it, though. Either the fact of the external SD card being in the first (WIFI) try and out the second; or that this was the first ever update of my unit's firmware (was it? Or did it update when I unboxed it? Not sure) and something was wonky; or (totally illogical) the presence of the (apparently useless) sideloaded firmware helped somehow???
Anyway, my recommendation for now, at least if you're on Mac, is to keep trying to update the Glo directly via WIFI, since that in any case seems to be the only method that works at all (unless I made a dumb mistake while sideloading the firmware).
Cheers.