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I install the patch, but the board still says I'm running 1.0. Is that ok?

If there were no errors in the install?   Sometimes if you are running an opcahce (apc, xcache, zen, etc) it can take a moment or two to refresh the cached page.  You can try ctrl-f5 in your browser as well.

Problem is fixed. I just chmod everything but the setting file to 777 and reinstall the update, now the forum is showing as 1.0.1