Holding the sync button on the console as per other forums didnt work initially, so did it loads of times:
Had the disc loaded that caused problem, held sync button on the console and powered off and on still holding the button on.
Powered off each time the error screen came back up while all the time holding the sync button on the sixth attempt it went past error screen and up to dashboard.
I went to load disc again and it asked me for update again so chanced it, this time it extracted update ok and then rebooted to dashboard ok.
Console now running fine, oh and Assassins Creed was the game that caused the initial update error, and Assassins Creed was the disc that I used in the multiple reboots which eventually cleared update fault.
Hope this helps as no other info on web that I could find.
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