I have never seen ths error message before??

also I am trying to update from 2.0 to 2.01 I download and run the update but it never updates??

You are probably running some other application that is using your DVD-R drive. E.g., I read in another post that you can't run Toast and Popcorn at the same time. I actually just got the "No recorder found" message, and the problem was that my Parallels virtual machine was the culprit -- to fix that I just had to go to Parallels and do Devices => CD/DVD-ROM Drive => Disconnect.