The Groups thing is a known issue. Hopefully RIM gets that fixed soon.
Remove yourself from as many groups as you can before updating. I upgraded to .586 on my 9700 last night and had 4 groups going. The automatic backup hung for over 20 minutes. I finally unplugged and removed myself from two of the groups and started the loader process again and the backup went through with very little hesitation on the groups. The subsequent restore after the loading process went relatively quickly, as well. If you can remove yourself from all groups that is best.
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