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I can't speak too much about firmware upgrade issues on the PP (only got mine 3 days ago), but I've had some past experiences with firmware upgrades on routers etc.
Something that might be worth a try is to format your SD card and re-copy over the .bin file and attempt the firmware upgrade again (an earlier post said you tried it but not whether the PP attempted to install the firmware or not). I also assume you are running Windows? In that case if you didn't, I recommend extracting the .zip file to your hard drive (ie: right-click .zip, select Extract Here) then copy the extracted .bin to the SD card. Under Windows you can just open up the .zip and copy the compressed .bin file to your SD card which Windows will unzip on-the-fly, which I have, albeit only once, an issue copying extracted files that way.
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