When I tried to update my 10.7.3 iMac using the BIG combo updater (MacOSXUpdCombo10.7.4 1.5GB) installer tells me I need 10.7 installed. This has never happened to me with a combo updater. I am going to try with the smaller (600Mb) delta updater.
I don't know the Tonto reference, but 10.6.8 can not be upgraded directly to 10.7.4 unless Apple ever releases a paid 10.7.4 USB key, or a Mac App Store purchase. The free updates can only be applied to paid copies of 10.7.
Brody: You are totally right. I was trying to upgrade the wrong Mac. I still use appleworks so that is the reason I keep my iMac frozen to OS X 10.6.8. MacTonto is a term of endearment that I use to refer to myself (tonto means stupid in Spanish). Thanks for replying.