OK Found this
Kostas B writes :
The <index-leopard-snowleopard.merged-1.sucatalog.apple> must be a temporary file meaning that the updates are not fully downloaded (may be your DSL dropped). When the update downloading is complete, the symbolic link index-leopard-snowleopard.merged-1.sucatalog will work again.
So perhaps it’s a sit back and wait!
My problem is slightly different. I received a brand new MBA with Lion already loaded. Then after a couple months, sites were changing, disappearing. I looked at the Lion software for sale in the Apple store, but did not purchase. A few days later, (please accept my lack of knowledge on most of this, I am new to Mac), under hidden files, there was a $29 purchase for that Lion software!
I really don't know what to do. I still have the Leopard.Lion Merge going on.
I cannot load the Recovery, as much is grayed out. Does anyone have any ideas on what little I have been
able to provide? I appreciate any help whatsoever. Thanks
I was able to get this working. It turns out i was just to impatient. The server needed time to re-build that file. So after I did the steps that i listed above and waited for 24 hours the files recreated them selfs and i was able to host up files again.
Sometimes you just have to wait. But that ***** when your used to a instant society !
Thanks Corey — sure enough, when I came in this morning, Software Update downloads were complete and the server is now feeding the clients. It's too bad Apple can't make this "fail" a little more elegant, but, with most of OS X Server, it's a far cry from the "friendly" quality of typical Apple UX.