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Nightly builds are good thing, they provide immediate feed back to developers if they broke the build.Having a nightly build means that the software and likely to build for new users.s/w that is not build regularly is difficult to release.
I finally figured out that Nightly does indeed update itself, because there was a notification displayed that prompted me to update. However, when I start the update, the updater hangs at trying to connect to the update server or something like that. There's a progress bar, but nothing happens. I have R/W permissions in the directory.