I got to step (4) on the instructions UPdate (data dictionary) and I started to get a series of errors:  
 
an error has occurred while creating ISPODESC.B-...etc.....LANGDICT.B-162....PIBINLOC.B-162  
 
and  error: The file olg FILELOC.b did not open properly, this conversion utility will not continue.  
 
Then  Error FILDIC.B did not copy properly. Please use Pervasive monitor to make sure this file is not opent is not open  
  
File KEY.B ,     file  Num.B "   file  DES.B       did not copy properly.....(above)  
 
could not delete Dict.file,   tempkey, file,   tempknum, file and des,fil  
 
It said  Update is now complete.  So per step (5)  I went to Help and it did say ISTS update 9/27/07.   But IN-B had series of ERROR Messages.  
  
All workstations have ISTS file in C: with a dummy file.
 
Any & all help appreciated  

I have run into a similar issue several updates ago.  
 
What I did is went into Pervasive monitor and made sure that all users were disconnected.
 
Then reinstalled the update but on step 4 checked the force update box.  It took considerably longer to update all of the tables but worked in the end.
 
I did make sure to gave a confirmed good backup available before starting though.
 
 

also...just for the record...
 
Lynn had me go to Start> Programs> Pervasive and right click.  She said I should see SQL 2000i , but all my workstations just say  SQL 2000  not 2000i.   Lynn said it didnt matter on the workstations  (I plan to upgrade to Pervasive soon)  
However, the Pervasive screen that accompanies the DBA entrance screen DOES read SQL 2000i.
 
This may not be worth anything, but it might help someone.