I had the same problem, and searching the internet found lots of references to this problem, but no solution that I could find. Several people said change your DNS, set the TimeZone properly, or full reset, etc. None of which worked for me. My solution (which I think is the only correct one to this specific problem), is to delete some apps to free up enough memory to allow the VuDu app to complete it's required update. I suspect when this (older) Blu-ray player was built, they (Samsung) chose a default set of apps that fit into the available memory, but as time went on and the apps grew, they eventually got to the point where the default set of apps no longer fit. And, of course, the software doesn't catch this error condition, thus the update just hangs. The solution is simple but a bit convoluted.
1) Disable your network so the update won't automatically start when you go into "Internet@TV." This can be done by simply unplugging your network cable, or if that's not convenient, disable the network in the main settings (e.g. set IP address to manual, then just leave it blank).
2) Now go into "Internet@TV" from the main screen. The update should now not start. From this screen, cursor down to "Settings" and select it.
3) If you select 'Properties' you'll see your memory is 100% utilized (60.93/60.93MB). That's the root of the problem.
4) Go back and select 'AppManager'. Pick a few larger apps you don't use that have the trash can icon available, and select the trash can to delete. It will ask to confirm, and say yes. (Some apps are locked, like VuDu, so you can't delete them.) I don't know how much you have to delete, but I did several to be safe. After doing this, I checked the 'Properties' tab again and the memory usage didn't change, but I suspect it doesn't update until you exit and come back into "Internet@TV".
5) Re-enable your network by undoing whatever you did in step 1.
6) Go back into "Internet@TV", the auto-update will restart again, but now it will finish!
7) Enjoy whatever you were trying to use in the "Internet@TV."