For you to be able to update the file from the Joomla Update Manager, please make sure that you have set your subscriber ID setting in JFBConnect. Without this, you will be unable to download/install the package that way as sourcecoast.com will have no knowledge of your subscription.
Regarding the installation failing when selecting a zip file, the size of the latest 6.3 version is larger than the default size allowed by PHP. To solve this, you can edit your php.ini file. The new settings to fix this would be:
upload_max_filesize="3M"
post_max_size="3M"
After you make the changes and restart Apache, please go to the System -> System Information -> PHP Information section in the Joomla Admin area. Then, search for the values you updated "upload_max_filesize" and "post_max_size". There will be a few columns after each value. The first column is the "Local" value, which is what is currently being used. Please make sure that is at the 3M value you specified above to make sure the values took effect and then try the installation again.
-Melissa