Maybe because the patch didn't fix anything but much worse when it supposed to restore the ranking, Wait for few hours then try again, if not, get in touch with Studio Liverpool to see what's going on. Also it's still not connecting to the servers so you're not the only one here mate. Try reinstalling the game (don't delete the save data) and patch and try again.
I had this same issue. The solution was mentioned. (Thanks) Load Wipeout HD. Now WAIT. (YES WAIT) Let it SIT on that "update" screen, dont click or anything. The trick indeed is watch the HD light to stop. (Or other thing, wait till you start hearing the background music) THEN click update. Worked 100% for me.