How to update the XBMC on the raspberry PI

[Fred]

How did you install your sd card? It looks like you are not on an XBian image.

First you should be able to login as xbian. Use both xbian and raspberry without capital letters. Logging in as root can be dangerous if you are not careful (because you have permission to do anything). When you are logged in as root you don't need to type sudo before the commands, sudo is used if you want to run a command you need root privileges for but are not logged in as root.

You are trying to pass commands while the previous has not finished yet. It will hang at the '100% bzip' line for a while, that's normal.
You should wait until it has finished, it's finished when you see this:

Terminal

xbian@xbian ~ $

Or in your case (because you logged in as root)

Terminal

root@xbian:/#