TL,
By double clicking the ISO image file Roxio should open to the "Burn Image to Disc" window.
If you burn the image to disc using Roxio (My version is 9) you should have the following items on your disc:
3 folders:
CONF Renewal SDATA
2 files:
discinfo.tx discid.dat
Insert disc into unit if not prompted to update or if you get a "Disc format unreadable", try resetting the unit and see if you get the update prompt on boot. If not, you gotta bad burn.
I would have the bypass already done before the update.
Good Luck!