Deep,
For you question on how to you, see your post from 3/6-2008
http://social.technet.microsoft.com/forums/en-US/systemcenterupdates/thread/ab8cfbc6-ff2f-407b-a0f8-e353e25fa145/As for how much space you need, this depends on what you selected to update. If you have multipple languages and alot of product you will need alot. I have some SCE installation that has around 60GB of updates. Exept for this, you need to calculate the space for the applications packages you might want to add.
Note that the update folder need to be located on the local server, it does nto support to be moved to a network share.
Björn Axell MVP - Advisec AB
http://blog.advisec.com