During this process do not turn the system off. First the Linux operating system is updated then XBMC is updated. You will see several blue screens displaying information and the system will reboot itself a few times.
After the software update your screen will look like this, this is the new "Raspbmc Confluence Mod" skin.
If you want to change back to the original skin then under SYSTEM-Settings-Appearnce-Skin,
select the "Confluence" skin