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So far, I've found the following methods:
1 - Interactive PC Web Installation: Unzip lcsOTA.zip to the root of an IIS server. I had to open the ASP files and manually change lcsOTA to /lcsOTA for all entries in the files (there's about 10 or so per file). Access/install from PC with handheld connected - very similar in nature to how RIM offers the AXLoader installations of the Google Talk, Yahoo and BlackBerry Messenger clients.
2 - Interactive PC ALX Installation: Unzip lcs.zip to a location and install using Desktop Manager and Application Loader (I believe this is the method you've tried).
3 - Interactive Handheld OTA Installation: Unzip lcsOTA.zip to the root of an IIS server. Access via handheld. I have not been able to get this working from the handheld (using the same unzipped files as Option 1), though.
I'm sure that you can do a Software Configuration push, although I have not tried it. I will test in a bit.
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