That was my impression, and since I had a 3G instead of 3GS I was unfamiliar with the SHSH's downgrade process. It seemed to hang during the recovery process so had to do a full restore and itunes just set it to 4.0. I assumed since Apple was still signing 4.0.
I did notice during the 4.0.1 upgrade there is no option to only download software, it automatically installs. Once you hit install obviously![]()
When the update notification box first pops up in iTunes, that is the time to choose from Download or Download & Install.
Of course, the correct pick at this time is download (only) until new tools are released.