For those people who got their N1, I found this on Nexusoneforum, it the OTA update manual install guide, haven't tried it yet, lol my phone is still in transit, will be here by next week...lol, enjoy this~
1) Download the upgrade ZIP file from here:
DOWNLOAD
2) Save it to your PC
3) Rename it update.zip (not case sensitive AFAIK)
4) Connect the phone via USB to your PC
5) on the N1 "mount the USB" (by pulling down the notification bar and clicking on Mount) so it's now a hard drive to your PC
6) copy the ZIP file named "update.zip" to the root of the new drive on your PC (the root of the SD Card)
7) unmount the USB (by pulling down the notification bar and clicking on Mount)
8) power down phone
9) Power on your phone with the power button, volume down key and trackball pressed
10) Enter Recovery mode by pushing down VOLUME key to select the option and POWER key to enter the menu
11) When you see the Android and Update icon (a swoosh) press POWER and the VOLUME UP KEY (at the same time)
12) Apply update.zip
13) Reboot when it tells you to.
14) Don't worry about the many reboots, it will take some time.
Hope to see some report back~