in #3 you say… Overwrite the updated theme files to the older theme files.
how do i do this? do i switch to another theme like twenty eleven, delete humanity, install new version of humanity? if i do this, I loose all the theme settings.
and please answer this question – am I going to have to do these steps you have mentioned #’s 1 thru 6 every time you have a new version of your theme/new version of WP?