Okay, before I tell you all what to do, you have to have a stock phone. By stock I mean no root access, no ROMs, and NO custom recovery. To get rid of all of this refer to my guide here.
Let's begin. After flashing your phone stock, hook up your phone to your computer and download this file.
(Thank You Dodgejcr)
This is the official and untampered Froyo update.zip IF YOU TOUCH THIS FILE THE UPDATE WON'T WORK. That being said, take the file and put it in the root of your SD Card. (That means not inside some folder in your SD Card) Now you will want to boot into recovery. Turn off your phone and press Volume down, Voice button, Power button. Don't be confused if you've never seen this screen before. It is stock recovery, not custom recovery.
Really quick, if you guys can't mount your SD Card on your computer, just download the file from your phone and put it in the root of your SD Card like I said before.
Now that your in STOCK Recovery, use the volume up and down keys to navigate your selection. Navigate to 'apply sd card:update.zip' Now your phone will begin scanning for the update.zip file. It will find it and verify it hasn't been tampered with and it's official. If your phone can't read the find the file or gives some type of error, re-download the file and put it back in the root of your SD Card.
If you have no errors your phone will begin applying the update. I'd just sit by your phone for this part. Now I'd like to give a little warning. I flashed stock using the same guide you guys did but my SU icon was still there. Also since I used Shiftr182's Point Blank ROM LauncherPro was still on my phone. Why? Because it was make a system application when I applied the ROM. Don't be freaked out if when the update is done it asks if you want to use 'Home' or 'LauncherPro' If you have used Point Blank ROM
When the update is done applying, pull the battery out of your phone and boot it back up. If your wondering why it's because your phone will lag and not work properly. Everyone has had this issue so don't worry, just pull the battery and boot up.
And there you have it everyone. You now have the long awaited Samsung Transform Froyo update. Questions, comments, concerns? Below please.
EDIT: Ill be making an easy and comprehensive guide on how to root Froyo later today... So be happy.
I will also include WwJoshDew's video on how to root for all you visual learners.