So, I finally got the courage to update and after that butt clenching moment
during boot, where it kinda waits of a couple of seconds, it finally came on!!
The steps I took were:
A kernel update, because i had the 3.1.7 and pacman thought I had
3.2 I "downdated" to 3.1.10

ignoring pacman's prompt to first
update it (it's a mess to figure out, I know

) Before I could do that
I had to remove the old modules from the file system by hand (go figure...)!
$this->bbcode_second_pass_code('', 'rm -r /lib/modules/extramodules-3.1-ARCH
pacman -S linux linux-headers')
then I rebooted just to be safe...
After the reboot, I tried to update pacman
$this->bbcode_second_pass_code('', 'pacman -S')
and got
$this->bbcode_second_pass_code('', 'error: error while reading package /var/cache/pacman/pkg/ca-certificates-20110421-3-any.pkg.tar.xz: Pathname in pax header can't be converted to current locale.
error: failed to commit transaction (invalid or corrupted package)
ca-certificates-20110421-3-any.pkg.tar.xz is invalid or corrupted
Errors occurred, no packages were upgraded.')
so, I did
this and got it to update pacman!!
Pay attention to the "export LANG=en_US.UTF-8" part, that got it to work for me!!
So, let's try a
$this->bbcode_second_pass_code('', 'pacman -Syu')
Haha, not so fast!!
$this->bbcode_second_pass_code('', 'error: failed retrieving file 'core.db' from mirror.archlinuxarm.org')
Yup!! Then, I had to edit pacman's mirrorlist
$this->bbcode_second_pass_code('', 'nano /etc/pacman.d/mirrorlist')
hash out
$this->bbcode_second_pass_code('', '##Geo-IP based mirror selection
#Server = http://mirror.archlinuxarm.org/arm/$repo')
and select the closest mirror to me
$this->bbcode_second_pass_code('', 'Server = http://eu.mirror.archlinuxarm.org/arm/$repo')
Then I did a
$this->bbcode_second_pass_code('', 'pacman -Syu')
and was prompted to update to kmod which with a heavy heart I did, crossed my fingers and waited!!
after a somewhat alarming warning
$this->bbcode_second_pass_code('', '[2012-02-12 12:32] udev-compat has been removed, and should be uninstalled.
[2012-02-12 12:32] --
[2012-02-12 12:32] Framebuffers are no longer blacklisted by default.
[2012-02-12 12:32] --
[2012-02-12 12:32] binaries moved from /sbin to /usr/bin
[2012-02-12 12:32] ---------------')
and a reboot, Lo and behold, everything works!!
Hell yeah!!