Perhaps a firewall issue? Try dropping it for a while. Also check your memory card is mounted. Not had the problem myself, so I am clutching at straws really

 

This mayb abit stupid but you say "it says like this", how long are u waiting? ive havent updated my phone via Kies so i dont know how long it takes.
My only other suggestion is ring samsung support.

 

Hmm,same symptoms here, allegedly does the update and the phone hangs with the droid shovelling cr*p warning triangle "downloading"....obviously not an isolated case then.