I've had a slightly different problem with Live Update: After I did a system recovery Live Update did not work. The message "Searching for the fastest server" displayed for about 30 seconds, and then "Receiving data from server" displayed several minutes before a message indicating a timeout was displayed. After 24 hours trying, I decided that something had to be wrong, and started searching for a solution and found your post.
I first tried "onlineupdate" from the terminal, with the same result as before. But now I could see what was happening in the background - the program was trying to download the file update.list from a directory on update.linpus.com using FTP with a username and password. And the transfer timed out.
I tried to connect to the FTP-server using an ordinary FTP program, with the username and password that was displayed. And as expected, I wasn't able to connect. But the output from "onlineupdate" suggested that http also could be used, so here's what I did:
1) With FireFox, I opened the suggested URL
http://update.linpus.com/ACER/AspireOne/v1.0.0/update.list. It contained a list of 3 shell script files:
Code:
online-updater080730.sh
installpatch080725.sh
system080805.sh
2) From the list, I suspected that the Live Update process actually is about downloading and running the listed scripts. So I listed the directory
http://update.linpus.com/ACER/AspireOne/v1.0.0/, and the files were actually there, along with an xml file for each script file.
3) I downloaded update.list along with the 3 .sh-files and their respective .xml-files to the
/var/cache/online-updater directory.
4) I opened a terminal and cd'ed my way to the download directory. So, which one to execute first? Each file has a date in the file name, and at first I thought they should be executed in chronological order. But then I thought maybe they should be executed in the order listed in updates.list. So I decided to execute online-updater080730.sh first. Here are the commands needed, assuming the files are already downloaded:
Code:
cd /var/cache/online-updater
sh online-updater080730.sh
5) Since the file name suggested that this was an update for Live Update, I decided to try an ordinary Live Update again. And voila - It worked! A lot of patches were installed, and after a restart Live Update still seems so work.
I suspect the root of the problem is that Live Update on the recovery CD is set to use FTP, and after the CD was produced they switched to http. Bad ACER :roll:

Thanx guys - for pointing me in the rigth direction!