Kindle 2 software update instructions:

Step 1:   First let’s verify your current software version.  To do this, on your Kindle press the “Home” button then press the “Menu” button then select “Settings”. At the bottom of the Settings screen you will see the version information. If you see “Kindle 2.0.2 (309510017)" or newer than you do *not* need to install this update. Alternatively if your version does not match the mentioned version above than please proceed to step 2

Step 2:  Push the ”Home” button again to return to the home menu and then press “Menu”.  This time select “Sync & Check for Items”

Step 3:  After a moment, the Kindle will complete the sync and return you to the Home screen.  Press “Menu” again, followed by “Settings”, then “Menu” again and finally “Update Your Kindle”. 

This will apply the new software version to your Kindle and the update will be complete!