This one's a bit different. Normally with updates you have to download them before signing in to PSN. But with this one you can sign in to PSN and even play online while the update its going on. So it seems like a server side thing rather than an update that needs to be installed on the machine.
Interestingly the one time I almost played on 360 at a friends house, the 360 needed to download an update and it got stuck trying to download the whole time we were there, so I never got to play Kinect.
“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell
"When the power of love overcomes the love of power, the world will know peace."
Jimi Hendrix
