Whoa! You use a lot of tabs in your navigation!
Anyway, to the point. The Update button was meant to work with QuickTime, not QuickTime Alternative.
Here’s a little background (pasted from an earlier post of mine
here):
“[A]s you may know mov is a proprietary format (like wmv or rm), and there aren’t really any supported players outside Apple’s own “official” QuickTime player. Some people didn’t like that so they created QuickTime Alternative, which basically bundles Apple’s codecs with a filter that allows mov files to be played in DirectShow players (such as Media Player Classic and Windows Media Player). Since the filter is written from scratch out of the woodworks, it’s unsupported and is likely to contain a few bugs. Most notably in my testing, I’ve found some .mov .mp4 and .3gp files unplayable (in WMP), particularly ones with the H.263, MP4V, Indeo 3, and Indeo 5 codecs. The problem seems to only have cropped up when QuickTime 7 came out. Hopefully they’ll find a workaround. I can’t vouch the bug exists on all systems (I’ve only tested it on mine)."
I suspect (but can’t prove) that Apple may have added some “salt” to QuickTime 7 that may make it harder to reverse engineer or make it playable using alternative players.
Note that the “settings” toolbar is actually QuickTime’s, (just like the “borrowed” codecs) - not everything was written from scratch - just the DirectShow filter mostly. Of course the people making QT Alt didn’t connect all the features, so they don’t all work - nor are they meant to - (for example file associations assign playback to QT, not QT Alt).
In any case if you want to play it safe use
QuickTime (if you want to adjust the settings so it doesn’t interfere with your OS get back to me I’ll give you steps); else you can try to get a more updated version of QuickTime alternative
here