I had that too. I didn't mind trashing what wreckage of an OS X Lion I had already, so I downloaded it. I partly thought it may be 10.7.2 but hey, this is Apple and Lion. It just reinstalled Lion again without destroying the original Lion install. I guess it's a bug - basically it wasn't recognising that I had already updated to 10.7.1.
That's what I like about Apple, "it just works". Now where have I heard that BS before.
Was it like this when you all moved from Tiger to Leopard - were people going on about staying with or moving back to Tiger?