IT WORKED! Perhaps Woot overlords could send a free tablet as I help fellow Wooters update theirs and avoid hundreds of RMAs? (shameless plug)
One of two tablets I purchased had build HMJ37.01.5.0018 on it; identified by Settings, About Tablet, Build Number (at the bottom) and would not load Toshiba's OTA software updates.
I had to follow all of these steps:
download clockworkmod recovery (details here, download here ), connect the tablet to a Windows PC and load the tablet drivers that needed to be unzipped from the zip file on that webpage as Windows prompted me for Thrive drivers. They're all in that Zip file.
Once the drivers were loaded and I ran the batch file from the PC, it needed an SD card with Toshiba's 300+MB ROM file of the .0032 version on it, downloaded from thriveforums (details here, HUGE download here ). And remember to visit their sponsors - they have to pay for bandwidth and storage of a 300mb file!
Unzipping the .0032 rom, put the update.zip file in the root of the SD card, insert the SD card, run the backup program (just in case), by navigating the clockworkmod recovery app with the vol up/down buttons, backup the .0018 to your SD card, then run the update from SD card, and once complete, select the restart option.
Viola! Both tablets are updating using Toshiba's OTA updates and no more exclaimation point update errors!
I'm sure Woot/Toshiba can find my address to send my booty! ;)