OK after several retries and also Downloading the EFI-Update by hand I just got it fixed. The Problem was: after Downloading the EFI-Update clicking on reboot just didn't work and my laptop just hung.
So, after Downloading and installing the EFI-Update by hand I did the following instead of pressing "restart now":
a) open a terminal
b) sudo su -
c) shutdown -r now
Than the EFI-Update got successfully applied during the reboot. Thank god.
Ok.. I figured it out! Last night I made many discoveries about my MacBook pro 15" late 2008 model. First off I thought the sucker died with the 3 bad tone beeps. However this turned out to be a bad memory dimm (modual) which I learned on another thread. By proccess of elmination I figured out which dim this was. So this more than likley than anything else has to do with my Kernel panics in the past (Not Lion and Not EFI).
Secondly I looked around more threads because I was supiscous the EFi update was failing because I had my setup with a Master Boot Record partitioning scheme. As it turns out the EFI updates can only be applied if you have a GPT partitioning scheme. Therefore I had to erase / format and lose my Windows partition just for an update (This is not ideal at all).
So first I backed up to TimeMachine then I erased and then reloaded LION on the newley formated GPT drive via TimeMachine. Once back up I applied the EFI 2.8 Firmware update and it installed perfectly.
This definatley needs to be documented better than having to search discussions thread. Secondly the only reason I was using MBR in the first place was because it was difficult to setup the Windows 7 install on the GPT partition. One Windows 7 doesnt like and 2 Mac OSX with disk util can easily mess it up. If you make any change renaming drives... anything in Windows 7 on in Computer Management / Disk management you will hose your Windows machine. This is because the pointer to the Windows 7 OS gets lost in the GPT as it gets modified incorrectly.
So in my mind Apple is poorly supporting dual booting (Boot Camp). This is unsat as it was originally heavily advertised with bootcamp.
Oh well I guess I will hit virtual box and get more memory via this new EFI update.