I've gotten the OTA update notification a few times, but it never seems to work.
Try using OTA Rootkeeper and then updating. Not sure if that works. I updated mine before I unlocked and rooted.
I saved root with OTA Root keeper. But still, when I run the OTA update, it shows "Error."
It seemed to think something was missing after unpacking. Unsure if it meant from the update file or from my existing system.
Should I backup and do a factory reset, restore, keep root, and then install OTA?
You can try that but the OTA may just not work rooted even using OTA Rootkeeper.
I'm not sure if someone has a zip out you can flash. You may need to use the toolkit to flash back to stock and then do the OTA. Then reroot.
That's what I did. I used the nexus toolkit to roll back to factory unrooted and locked. Then took the stock 4.2.1 update. Then rerooted.
I don't think there's a lot of people out there with this tablet yet. Usually somebody posts a rooted image pretty quickly but I got tired of waiting.
Were you able to get this resolved? I'm not sure if you are aware but the original stock image posted by google on their website was bad. If you had flashed that factory image and are still using it then you should download and flash the fixed version that is now posted. (Or at least extract and 'fastboot flash system system.img' from it.)
Could be what happened, as I used the toolkit to root pretty early on
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