This morning I booted from my original Diskwarrior 3 CD. Immediatly after the directory rebuild began, a window popped up saying the directory was damaged beyond the ability of Diskwarrior to repair. I ran Apple's Disk Utility and it found no problems. I downloaded the 3.0.3 update from Alsoft, burned a new disk (which took seemingly forever!), and the update worked fine, no problems.
Mac OS X Hints
http://hints.macworld.com/article.php?story=20051001093330499