What do you mean when you say "The Fusion package refuses to run" or "...and it still won't work" What doesn't run, what won’t work? What error messages, if and, exact wording, etc... Sorry but without more information your question is rather vague. Being more explicit about what won’t work would keep us from having to guess at what you mean or are trying to say. Just remember the accuracy of the answer you’re given might just be in direct proportion to the details you give! 
I would like to give more information. When I update it and try to start it it won't run period. So I can't get any logs or information to you. It just shows fails to start.
When I delete it and reinstall 1.0 it runs fine.
There is no error messag. It just won't run. I looked at the "Help us help you", it provides no way for me to get data from a program that won't start. Do you have any suggestions of why it isn't? Is there a FAQ somewhere on how to do an upgrade of Fusion so I can make sure I am not doing something wrong?
Well you have already downgraded to 1.0 so this is moot, however while by no means complete the following is offered to to elicit more specific information than "When I update it and try to start it it won't run period." provides.
1. If you click Finder > Applications > (double-click) Vmware Fusion at the GUI level several things happen, the VMware Fusion menu bar appears, the Virtual Machine Library window appears and the VMware Fusion icon appears in the Dock. Behind the scenes (at the file level) a log file is created at /Users/$/Library/Logs/VMware Fusion/vmware-vmfusion.log and this log would have been helpful to have.
2. If you double-click on a VMware Fusion VM Package Bundle in the ~/Documents/Virtual Machines folder the above GUI elements appear along with the VM's window and the VM will run. There is a log file in the VM's package bundle as well.
3. When OS X loads there are several VMware processes that run automatically and can be viewed in Activity Monitor (Finder > Applications > Utilities > Activity Monitor). Some of them are vmnet-bridge, vmnet-dhcpd, vmware-natd, and vmware-netifup. In addition, when 1 above occurs several other processes occur, some terminating moments later, however one process in particular remains and that is vmware. When 2 above occurs in addition to what happens as a result of 1 there is a process named vmware-vmx and this process can exist even after the vmware process is terminated.
So, did you try 1 and or 2 and if just 1 did any of the GUI elements described above appear on the screen and even if none of the GUI elements appeared did the vmware process appear in Activity Monitor or was the log file created with the current date/time stamp, that of the time of execution? If you tried 2 did a VM window appear and did it run?
Anyway there are numerous other things happening at the file level however those are just some thoughts and I'm sure having more specific information will enable someone else to help you better than I could.
