I am having a similar problem.  My guy went to that forest path by the Magic Shop, and I have tried everything that all of you have said.  Now, the updater just boots up and quits on me.  It doesn't fix a thing!  Can someone just like tell me what to do personally?  Here is what the Console says:
Checking for updates:
Checking for updates to the updater:
There are no active mirrors! Please check the forums for more info and help!

Updater finished, press enter to exit.
2008-08-13 20:30:00.907 OmniOutliner[9414] Exception while loading document: Unable to read this file as it doesn't appear to have been written by OmniOutliner (reason: File has system ID of '(null)', but we expected 'http://www.omnigroup.com/namespace/OmniOutliner/xmloutline-v3.dtd')
2008-08-13 20:30:00.907 OmniOutliner[9414] -[OODocument loadFileWrapperRepresentation:ofType:]: Exception raised while loading document: The document "updaterinfo.xml" does not appear to be a valid OmniOutliner 3 file. Please check its contents. If you believe this file to be valid, please file a bug.
2008-08-13 20:30:00.954 OmniOutliner[9414] Exception while loading document: Unable to read this file as it doesn't appear to have been written by OmniOutliner (reason: File has system ID of '(null)', but we expected 'http://www.omnigroup.com/namespace/OmniOutliner/xmloutline-v3.dtd')
2008-08-13 20:30:00.954 OmniOutliner[9414] -[OODocument loadFileWrapperRepresentation:ofType:]: Exception raised while loading document: The document "updaterinfo.xml" does not appear to be a valid OmniOutliner 3 file. Please check its contents. If you believe this file to be valid, please file a bug.
2008-08-13 20:30:43.887 OmniOutliner[9414] Exception while loading document: Unable to read this file as it doesn't appear to have been written by OmniOutliner (reason: File has system ID of '(null)', but we expected 'http://www.omnigroup.com/namespace/OmniOutliner/xmloutline-v3.dtd')
2008-08-13 20:30:43.888 OmniOutliner[9414] -[OODocument loadFileWrapperRepresentation:ofType:]: Exception raised while loading document: The document "updaterinfo.xml" does not appear to be a valid OmniOutliner 3 file. Please check its contents. If you believe this file to be valid, please file a bug.
2008-08-13 20:30:43.892 OmniOutliner[9414] Exception while loading document: Unable to read this file as it doesn't appear to have been written by OmniOutliner (reason: File has system ID of '(null)', but we expected 'http://www.omnigroup.com/namespace/OmniOutliner/xmloutline-v3.dtd')
2008-08-13 20:30:43.893 OmniOutliner[9414] -[OODocument loadFileWrapperRepresentation:ofType:]: Exception raised while loading document: The document "updaterinfo.xml" does not appear to be a valid OmniOutliner 3 file. Please check its contents. If you believe this file to be valid, please file a bug.
Crystal Space for MacOS/X 1.4.0 [MacOS/X-x86-GCC]
Ported to MacOS/X by Eric Sunshine <sunshine@sunshineco.com>


PlaneShift Updater Version 5 for macosx.

Checking for updates:
Checking for updates to the updater:
There are no active mirrors! Please check the forums for more info and help!

Updater finished, press enter to exit.
Crystal Space for MacOS/X 1.4.0 [MacOS/X-x86-GCC]
Ported to MacOS/X by Eric Sunshine <sunshine@sunshineco.com>

Your configuration files are in... /Users/Kelly/Library/Application Support/PlaneShift
DEBUG: Sound System Software Renderer Initializing...

planeshift.application.client:
  PlaneShift Steel Blue (0.4.00)
  This game uses Crystal Space Engine created by Jorrit and others
  1.4.0 [MacOS/X-x86-GCC]
Wed Aug 13 20:31:21 2008, LOG_ANY flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_WEATHER flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_SPAWN flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_CELPERSIST flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_PAWS flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_GROUP flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_CHEAT flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_LINMOVE flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_SPELLS flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_NEWCHAR flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_SUPERCLIENT flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_EXCHANGES flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_ADMIN flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_STARTUP flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_CHARACTER flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_CONNECTIONS flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_CHAT flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_NET flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_LOAD flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_NPC flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_TRADE flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_SOUND flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_COMBAT flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_SKILLXP flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_QUESTS flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_SCRIPT flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_MARRIAGE flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_MESSAGES flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_CACHE flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_PETS flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_USER flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_LOOT flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_DUELS flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, LOG_TRIBES flag deactivated with no filter.
Wed Aug 13 20:31:21 2008, All LOGS are off.
Mounting skin: /this/art/skins/default.zip
Mounting skin: /planeshift/art/skins/base/client_base.zip
  psEngine initialized.
Using fontsize 16 for resolution 1023x756

planeshift_effects:
  Duplicate effect 'x_obj_quad' found!
  Duplicate effect 'x_obj_spire' found!
  Duplicate effect 'x_obj_star' found!
Wed Aug 13 20:31:24 2008, <src/common/util/psxmlparser.cpp:294 ParseFile SEVERE>
Wed Aug 13 20:31:24 2008, Parse error in /planeshift/shields/spiked_shield_04a.spr: Not a binary CS document
Wed Aug 13 20:31:24 2008, Error reading end tag. (in: line 405:5; meshfact -> params)
Wed Aug 13 20:31:24 2008, Error reading end tag. (in: line 405:5; meshfact -> params)
Wed Aug 13 20:31:24 2008,
Wed Aug 13 20:31:24 2008, <src/client/psengine.cpp:1511 BuildFactoryList SEVERE>
Wed Aug 13 20:31:24 2008, Couldn't parse file /planeshift/shields/spiked_shield_04a.spr
Wed Aug 13 20:31:24 2008, <src/common/util/psxmlparser.cpp:294 ParseFile SEVERE>
Wed Aug 13 20:31:24 2008, Parse error in /planeshift/shields/spiked_shield_04b.spr: Not a binary CS document
Wed Aug 13 20:31:24 2008, Error reading end tag. (in: line 405:5; meshfact -> params)
Wed Aug 13 20:31:24 2008, Error reading end tag. (in: line 405:5; meshfact -> params)
Wed Aug 13 20:31:24 2008,
Wed Aug 13 20:31:24 2008, <src/client/psengine.cpp:1511 BuildFactoryList SEVERE>
Wed Aug 13 20:31:24 2008, Couldn't parse file /planeshift/shields/spiked_shield_04b.spr
WARNING! Object 'spikes_04' is not closed!
WARNING! Object '_s_column_01' is not closed!
WARNING! Object 'spikes_02' is not closed!
WARNING! Object '_s_sigil_06' is not closed!
WARNING! Object '_s_stairs_01' is not closed!
WARNING! Object '_s_sigil_04' is not closed!
...

crystalspace.graphics3d.shader.fixed:
  Multitexture units: whopping 8

planeshift.application.client:
  PSLoader: step 2: success
  PSLoader: step 3: success
  PSLoader: step 4: success
Wed Aug 13 20:31:42 2008, <src/client/psclientdr.cpp:248 HandleStatsUpdate SEVERE>
Wed Aug 13 20:31:42 2008, Stat request failed because CelClient not ready for 37576
Map terr_common loaded successfully in 494ms
Wed Aug 13 20:31:43 2008, <src/client/psclientdr.cpp:248 HandleStatsUpdate SEVERE>
Wed Aug 13 20:31:43 2008, Stat request failed because CelClient not ready for 37576
Map hybdr loaded successfully in 1055ms
Wed Aug 13 20:31:44 2008, <src/client/zonehandler.cpp:187 HandleMessage>
Wed Aug 13 20:31:44 2008, Still loading maps, ignoring crossing to sector hybdr2.

crystalspace.maploader.parse.image:
  Could not open image file 'materialnotdefined' on VFS!

crystalspace.maploader.parse.texture:
  Could not load texture 'materialnotdefined', using checkerboard instead
  [node: world,textures,texture(name=materialnotdefined)]

crystalspace.maploader.parse.image:
  Could not open image file 'dirt01.dds' on VFS!

crystalspace.maploader.parse.texture:
  Could not load texture 'dirt01.dds', using checkerboard instead
  [node: world,textures,texture(name=dirt01.dds)]

crystalspace.thingloader.parse:
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=HowlingWell01),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=LgStalagmite02_01),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=Stalagmite01_01),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=towerWindow01),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=towerWindow02),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=XlStalagmite03_01),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=cliff03_01),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=cliff02_01),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=KorogansPass01),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=korogansEnt),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=ruinDirt01),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=ruinTowerInt01),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=rdbdoorswater01),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=cliff05_02),params]
  Thing objects are deprecated! Please use genmesh instead!
  [node: world,sector(name=bdroad1),meshobj(name=WoodsEnd04_01),params]

crystalspace.engine.warning:
  Couldn't load cached lighting for 7 object(s). Use -relight to calculate
  lighting:
      LgStalagmite02_01
      XlStalagmite03_01
      KorogansPass01
      korogansEnt
      ...
Map bdroad1 loaded successfully in 1626ms
Wed Aug 13 20:31:46 2008, <src/client/psclientdr.cpp:212 HandleDeadReckon SEVERE>
Wed Aug 13 20:31:46 2008, Got DR message for unknown entity 37238.
Wed Aug 13 20:31:46 2008, <src/client/psclientdr.cpp:212 HandleDeadReckon SEVERE>
Wed Aug 13 20:31:46 2008, Got DR message for unknown entity 37238.
Wed Aug 13 20:31:46 2008, <src/client/psclientdr.cpp:212 HandleDeadReckon SEVERE>
Wed Aug 13 20:31:46 2008, Got DR message for unknown entity 37238.
Map korogan loaded successfully in 235ms