Even when you buy the CD, you may have the same problem...
Look here at Dell's forum
http://forums.us.dell.com/supportfor...essage.id=5291
After you purchase the upgrade CD, you apparently may need to set your language to English, hard reset the Axim, then do the upgrade. But please read the thread to make sure I am not missing something.
I wanted to make sure you were aware of a possible fix when your upgrae CD does arrive in case it gives you the same error. :)
-JmE-