I am getting this error when trying to update:
Permission denied in /usr/home/xdaysbet/public_html/libraries/joomla/filesystem/file.php on line 298

Is this a permissions error on my server. Right now permissions on file.php are set to 774.

Thanks,

Mark

I'm getting the same or similar error:
Warning: file_put_contents(/home/montgomerymatters/public_html/templates/rhuk_milkyway/css/template.css) [function.file-put-contents]: failed to open stream: Permission denied in /home/montgomerymatters/public_html/libraries/joomla/filesystem/file.php on line 298
Failed to extract archive!

Hmmm, quite possibly this error is triggered by not having ftp enabled in the Site Settings, Global Configuration.