I did an update using mage.exe and it went fine. On installation it was able to get the update and was downloading the new files until I got the following error in the dialog box.
An error has occurred writing to the hard disk. Check if there is enough avaiable space on the disk. Contact the application vendor
Following is a more detailed message
ERROR SUMMARY Below is a summary of the errors, details of these errors are listed later in the log. * Activation of **\**Applicaiton.appref-ms resulted in exception. Following failure messages were detected: + Downloading file://*/.ShellApplication_220.127.116.11/menu.config.deploy did not succeed. + The file 'C:\Temp\Deployment\G4E1YMP1.X3Z\V52Y7801.BHJ\menu.config' already exists.
I have plenty of space on my hard drive so looks like the error is related to something else.
The only thing I can imagine might be going wrong is that some how the file 'C:\Temp\Deployment\G4E1YMP1.X3Z\V52Y7801.BHJ\menu.config' has been locked and ClickOnce engine can't download it. Use procmon to find process which has a handle on it or try moving the file from that location.
Also, make sure your c: partition has enough space as well.