I have the TID 3407754, and have done the steps as described. The 10.0.1 is now showing as downloaded in the System Updates tab of the configuration page.

I am using a SLES10 server as the Zen server. I have restarted the server after making the previously required changes to the hosts file.

I am guessing that since it is reporting as downloaded, that I did that correctly. Is it supposed to do something more? I am still seeing 10.0.0 as the version when I look at the server.