I have this problem using the auto-updater too. Whenever I go to the auto-update page, I am told to set the filepath just as the OP. And similarly when I do so, it doesn't save the filepath and instead continues to issue error messages.
How do you run the auto-updater as admin, or can you? The one launched from his webpage:
http://updater.pala.de/
EDIT: No idea why but it's fine now. I checked it a couple times for the past 3 hours and now it updated fine. Thanks for the update!