Hello Ray,
According to the documentation of the modification, you need to create the folder $000:\fort2pl1.nonibm before applying the update.
Are you sure the transfer is okay? I just tried the update on a freshly downloaded MUSIC 6.2 Demo and the file fort2pl1.arc (after transfer) has 3190 records of length 80 for a size of about 232K. With the needed folder and that archive, APPLYUPD worked perfectly in my case.
Cheers,
Rene FERLAND, Montreal
René Ferland