Firefox 4.0.1 (20110413022027) downloaded but cannot connect to update site to complete installation.
Windows XP Pro on old laptop running Kaspersky Internet Security 11. Firefox Options Advanced set on Auto Update as suggested by you. When I open Help About Firefox today, the update downloads fully but when I click Next, can't connect to the update site to complete installation.
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I worked around the problem by downloading 4.0.1, pausing Kaspersky, and installing the new download. The Yahoo Favorites bar was wiped clean after installation. Otherwise everything seems to be working fine. I've sent the PayPal notice to their "spoof" service for verification, but seems like a legit e-mail. Many others seem to have had similar problems with 4.0 and Win XP Pro or 7.