Originally Posted by tzbf2006

I had the same problem. Found out that my firmware version was older than the one the update requires. Check to see if your firmware matches this post http://androidforums.com/sprint-htc-hero/19317-update-available-sprint-3.html#post123614. If it does, then nothing I can really tell you. If it doesn't, then you have to update with a RUU to that version. Follow this link Link to Stock HTC Hero ROM - xda-developers. Look for it in the first post. I had to get HTC Sync to actually see my device before I could run the update. Windows XP worked just fine with the supplied HTCSync.exe software on your phone's SDCard.

Right now, I'm updated to the most recent version. Everything is running smoothly!