Well I used Odin to restore it back to stock, then updated it manually. Almost had a heart attack cause it hung at 20% for about 2 minutes!
For anyone wanting to do this update manually, its pretty easy.
Only do this at your own risk. I am not responsible for bricking your phone!
1. Download
Odin ***Note: you may need to rename the odin file to .exe cuz the host site tends to rename it with a .bin***
2. Download these 4 files:
Transform Ultra Odin OPS
Stock Recovery
Stock Kernel
Stock System
3. Once downloaded, run Odin and then put your phone in "download mode" by turning off your phone, waiting 30 seconds for it to completely shut down, and then by pressing and holding the camera button + volume down + power until it restarts into download mode. Press volume up to continue. Connect your phone to your computer.
***It should automatically update the drivers for your phone, if not you will need to manually locate the drivers online and install them. My computer did this for me automatically***
4. Once your phone is connected, and Odin is up and running you should see in the upper left side of Odin that it says "COM: #" and that's how you know it's connected. If that's not there, you didn't install the drivers properly.
5. Under the COM ports section, make sure that you have checked "One Package" "Reboot" & "Protect OPS" and nothing else and "Debug only" in UNCHECKED!
6. Then click "OPS" and select the Transform Ultra Odin OPS file you downloaded
7. Then click "One Package" on the bottom of the window and select one of the other 3 files you downloaded (recovery, kernel, or system). *Note: the system file is in a zip file, just unzip it and use the file inside for the system file*
8. Once it has finished uploading a file, it will reboot. Just power down your phone. Close out Odin and reopen it for each file you flash if it doesn't say "PASSED" above the COM Port you are using after you power down your phone.
9. Repeat steps 3-8 to reflash the recovery, kernel, and system images to your phone.
***You will now be back to stock version 2.3.4***
10. Once these have been done, download the original file in the first post by interdpth.
11. Rename the file to "update.zip" and place it on the root folder on your sd card (root meaning the base location on your sd card "sdcard/update.zip")
12. Power down your phone, wait 30 seconds, reboot into recovery mode by pressing and holding volume down + power and then releasing only the power button once it says "Samsung" on the screen. Connect your phone to your wall charger!
13. Using the volume up/down keys, highlight "apply update from /sdcard"
14. Press the power button to select it.
15. Allow the phone to update, it might hang at 20% for a while and then when it's done, it will reboot itself!
Once it reboots, let it sit for another minute and a pop up will appear saying "finalizing update" and then it will pop up saying "update complete" and you will be running 2.3.6 on your Transform Ultra!
You will notice some slight changes like the "Boost Zone" app and different live wallpapers, along the phone and ID buttons changing color. The touch screen works MUCH better and there are no more CIQ's on the phone.
Anyways, I hope this helps you all who don't want to wait for interdpth to get it working with root and CWM, although he should have it up and running tomorrow evening. I know a lot of you are impatient, like me.