FYI:
I got the notification that my phone was going to be updated, but sometime during the process (I was busy, and wasn't paying attention as to when) it fell over.
What I saw was a screen with a warning icon. The screen looked like a bootloader screen, with options to reboot, restore, etc. At the bottom it simply said install failed. None of the options were selectable, and I was eventually forced to remove the battery and let it restart. Needless to say I still have Froyo.
Yes, I know, I should have written down the messages. I do IT for a living and know better. Sorry I can't give more info.
Interestingly when I check for updates now it says I'm up to date, but System Info still shows 2.2.2 Froyo.