Our Orbiter programmer won't be in until Monday. But I know that every time it starts it compares its version against the latest version on the Core, and if it's older, it gets a program "UpdateBinary" from the Core, saves it locally, and runs it. UpdateBinary then updates the Orbiter program, and re-runs it.
Looking at your log it says:
16:23:59.546 CRITICAL : Failed to save the UpdateBinary application to location '/'
16:23:59.546 CRITICAL : Unable to download UpdateBinary application from the server.
I think this means the temporary location it uses is the root directory, like c:\, and it can't write there. What type of device is this? A PDA, webpad, PC? And is this the windows xp/2000 or ce version?