If you get to Android droid when attempting a firmware update but you don't get a status bar then it means the update file has not been recognised.
When you updated originally to 1.0.8 how did you do it? By USB drive?
It sounds like the first update maybe didn't actually install and instead you did a factory reset (which would happen if USB update file wasn't recognised) which has messed up some pre-installed apps (including the launcher - hence the errors you're getting).
The only solution is to do a full clean install using a USB drive and upgrade button on back. As here: http://www.futeko.com/newforum/index.php?topic=1303.0
USB drive needs to be FAT32 formatted. USB drive should contain one file 'update.zip', which you'll find inside our firmware download zip. Follow the instructions in the linked thread precisely.