OK, I have solved this problem. What I needed to do was to follow the DETAILED instructions. In other words, I had to delete EVERYTHING except those specified by the instrucitons, upload the 2.0.3 files, restored my wp-config and it all worked.
Seems like when i try to “overwrite” my old files, somehow, they do not get overwritten.
Anyway, thanks for the help. Seems like WS_FTP does not overwrite files properly… :\