That is normal for multiman to return you to XMB after selecting Game.
Then you must click on Disc Icon to play the game. A lot of games require you to have Disc in PS3 before starting the game.
If you update a particular game it won't update you to OFW . Its a Game update, not a System
But to be safe you can use Multiman to check on updates or use PS3 game updater 1.41 - http://www.ps3news.com/forums/ps3-ha...tml#post360012
If you get Black Screen on games, you may also need to set option BD-Mirror in Multiman for that particular game.