I loaded 1.60 on my EZSrve. LIST FILES show the expected 1.60 xml files. Did a RESET on 1.60, after logging back in following reset, used the Server Update HTML screen to load 02.02. I am running IE8 in Compatibility View mode and I always run in DHCP mode. Currently the Discovery tool does not list 02.02 although I did use the 1.1 Discovery tool to load 02.02 yesterday. The 02.02 image loaded successfully from a 1.60 base. I have the expected V2 xml files including DevClusters even though I did not explicitly upload that file. Image 02.02 is running as expected.
This certainly does not mean that the process works on every device but it did work on mine.