Thats correct... but I have been working on some code that will hopefully be included in all future images; which gives you the choice of using FTP, or downloading the image via the internet.
You can also use your dreambox to *suck* the image over the network and then install it. If you do that then the box gets the image for you, and you dont have to play around with FTP etc. No internet connection required either; just a standard connection to your PC or router. However, you will need a little piece of software on your PC for this to work (maximum 200k program which runs silently in the background).
Note that all these are future image expansions and nothing like this is available yet. Current ways to do it is via FTP (only original .IMG files are supported - .FWZ cannot be flashed via on-screen menus); via FlashwizardPRO (which is basically an FTP client in disguise) or via DreamUP and a null modem cable.
Liam