Did it show the same conflicting packages in the update details screen?

I need to get some sleep now (really late here), so I hope someone else can help you. But it definitely looks like a problem with the conflicting packages.

I had a similar problem with the OTA update (due to libgles1-sgx-img) but I was able to remote the package with apt-get and continue with the update.

You can also try power search (on the right hand side menu on this site) with "libgles1-sgx-img".

Edit:

And also see the firmware update troubleshooting info at Wiki:
http://wiki.maemo.org/Cannot_install_firmware_update