I updated a Joomla 1.5 website to Joomla 1.7 using the suggested method, i.e. Jupdate. All was find and the website worked with no problems. However, when it was time to upgrade to 1.7.3, I found that all was not as well as I had thought with the website. Joomla 1.7 includes automatic update capability for future enhancements and changes and naturally I used this method.
When I attempted to update the website, an error with this message occurred: Invalid extension update
Pressed for time, I uploaded the upgrade and installed it the old fashioned way. The website worked fine with no problems again. When it was time to update to Joomla 2.5, this error again showed up.
This time, I compared database files and the files from each update with the complete version of the package. I found that the file /administrator/components/com_installer/models/update.php was different on my website. I replaced the file with the one from the complete package and the automatic update worked.
I do not know if this is fixed yet, so if upgrading Joomla 1.5 to 2.5, be aware that this file may need to be replaced.