QUOTE(Lurkin @ Mar 19 2010, 12:42 AM)

The update just runs from the cache folder. You won't see anything come up when you run the game unless it needs an update you don't have. The file remains in that folder, it does not disappear or apply itself to the game. It just uses the update from that folder. Think about discs, there would be no way to "write" that update to a finalized disc. Which is why it's designed to just run from there if Title Updates are present.
You would want to use NTSC/U or RF updates. And you only need the latest update as they incorporate the lower updates. Update 2 would contain everything for update 1 and 2. Such as update 5 would include everything from update 1-4 along with the new update 5 stuff. You'll notice as each update grows larger.
ah make sense now. I just tried with SF4. I put a TU in the cache folder. This time SF4 actually said, "can't find save with new update, (or something like that), do you want me to create one?" Also it said, there are new modes. Sure enough I didn't have the Challenge mode before. Cool stuff.
I'll make note of backing up the Cache folder too...
I'm sure the great minds in the 360 scene will one day figure out how to download TU's for the games you have on HDD and dump them in the cache folder with xm360. That would be nice...
Thanks for clarifying.