WordPress 3.2.1 automatic and manual update fail

I have tried to update WordPress 3.2.1 automatically, and manually via instructions online. Automatic update stalls at “downloading update from http://www.wordpress.com/…”. The automatic updates have always worked in the past. Tried disabling all the plug-ins, still did not go through (although plugin updates work fine).

Manual update crashed the entire site. I got it working again with a full disk image. I currently have the WP-Security Admin plug-in installed, and all the chmod settings look to be correct. Not really sure where else to look.

Let me know if you have any ideas for a fix, or explicit instructions for a manual update.