Upgrading the Galaxy Note to Jelly Bean

I received an SMS from AT&T today telling me that I could upgrade to JB using KIES. Enough acronyms for you?

Rebooting into Windows so that I could launch Kies....
Starting Kies, it detected that it was out of date and updated.
Afterwards, plugging in the phone, it detected the firmware was out of date and tried to update.
That's where things got redundant.  I got in an infinite loop that kept stopping at:

Now, don't get me wrong. My first thought was maybe I was down to 100MB internal storage again. I do tend to install a couple hundred apps.

But, now according to the file manager:

So what's going on?

After a few attempts, I went to Settings | Storage | Unmount SD Card

After that Kies was able to upgrade the device.