No, the receiver wont stop looking for the update until the update is successful. But something is not right because it should be updating
Please post back with your signal readings for each satellite's transponders (and both tuners if applicable). You'll find these readings under "Menu" -> "Setup" -> "System Setup" -> Satellite -> "View Signal Strength". Note the "+" and "-" symbols next to the "Satellite" and "Tuner" entries where you can toggle the readings between the various satellites and both DVR tuners.
Fill in your readings for each satellite and tuner using these examples. A properly aligned dish will show 80-90s on most of the relevant transponders (although some will be low or zero):
Satellite transponders (32 total at 101º)
[Most of your standard definition channels are beamed from 101ºW]
1-8 x x x x x x x x
9-16 x x x x x x x x
17-24 x x x x x x x x
25-32 x x x x x x x x