Support I lost Taskiller and file manager during updating my phone from 2.1 to 2.3 but still it is 2.1

Why did this upgrade didn't work, its still android 2.1
I was updating my gt540 to android 2.3 by this metod,

i enabled USB Debugging by going to Settings>Applications>Development>Enable USB Debugging then OK and connect the phone to the computer,

i installed "MSXML 4.0 SP3 Parser (msxml.msi)"

then i run "KDZ_FW_UPD.exe",

setted "Type" to "3GQCT"

and

'PhoneMode' is set to 'DIAG'

then

i Browsed for the 'Europe Open+fastboot.kdz' file. on desktop
then i clicked to launch software update,,,,,

Everything was going good
It took around 10-15minutes to complete,,
phone restarted by itself and i found the same old version nothing new , then i hard reset phone by volume up+search+home= hard reset,
it got reset, but when i found the ui of android 2.1 then i got dissappointed,
its still android 2.1 , nothing different found,

during update i was thinking did my phone break or not, did my phone break or not, did my phone break or not.............
i went to setting>about phone
i found this

firmware version = 2.1-update1 (((((sames as before)))))
kernel version = 2.6.29 lg-electronics@si-rd10-ubld01 #1
software version = gt540-v20a-OCT-95-2010

it was suppossed to 2.3.3
but what left wrong and i lost taskiller and filemanager
but i got lg app advisor, the sims 3.
So tell me where i got wrong, what can i do to upgrade to android 2.3
i followed as dudeman1996 has posted to update,,
http://androidforums.com/optimus-gt...yanogenmod-7-android-2-3-avaliable-gt540.html

 

Ok i stopped halfway, thanks for making me aware,
Where i got wrong?
let me explain all in short, what i have done is.......

"KDZ Updater Europe Open.zip" downloaded and extracted....
installed "msxml"
then clicked on "KDZ FW UPD"

in phone setting>application>development>USB Debugging=check mark

in KDZ FW UPD Changed 'Type' to '3GQCT'
'PhoneMode' is set to 'DIAG'
Browsed for the 'Europe Open+Fastboot.kdz' file. that i downloaded.
Clicked 'Launch software update'

Everything going good, at last showed finished....

then i think to install cyanogenmod 7 automatically and
downloaded swiftdroid v1.9.exe
installed it
then DOS opened with text file showing this

"Put the phone in fastboot mode by holding down the camera button all the way and powering on the phone. Make sure you hold the power button while the LG logo is shown on the screen. A blank screen will then appear after a few seconds. The phone is now in fastboot mode.
Connect the phone to your computer by the USB cable.
Run the .exe program and let it install CyanogenMod 7 on your phone".

I did exactly same fastboot mode came up with blue screen but DOS got stuck on showing with this
C:android\Swiftdroid>fastboot.exe -w
< waiting for device >
this is the third line of DOS.

i left my phone for 10minutes or more but DOS still stuck on the same, what's the reason........

Other software i am having is this
"update-cm-7.0.0-RC2-GT540-MUR4IK-signed"
i dont know what is this but i downloaded this from somewhere.....

I m trying to update since 2 days but with the previous post result....
any idea?

 

yap my phone got blank in fastboot, yes there was lack of driver that i founded in "installing cyanogen manuallu" thread,
It worked for me, after some effort and with the help of your i successfully updated to android 2.3.3,
yes our effort did this job, thanx,