There's nothing strange. You have to boot from the CD to be able install/update the system. If you boot from the HD, it has older version of boot.img. To boot from the CD follow Yasu's advices. Remember that Macs won't boot from the inserted CD automatically. If you have MorphOS installed on the HD and you don't do proper CD boot, then old boot.img is loaded and MorphOS itself boots from the device with highest boot priority, which can be CD in this case and that's why it looks like booting from CD, but in fact it isn't fully booted from it.