no, if you click the update button, it'll just send you download the latest version of zen cart.
To import the database into your test site, go into phpmyadmin and find the database for the test site.
Just to make sure you have the right database, go intoyour test site via FTP and into
includes/configure.php
open that file and look at the database details at around line 47
you should see somthing similar to this here
define('DB_DATABASE', 'usernamehere_zc1');
the bit that says usernamehere_zc1 in my example above is the name of your database, so taking that example there (your will say somthing slightly different probably) if you go into phpmyadmin and on the left hand side. click on the database you want, in this case its called _zc1
so click on _zc1 (or the equivelant name in your configure.php) and that will open the database for the test site.
If you do the same for your main site, go into includes/configure.php and check the database name, then make sure you have a copy of that same database, if you dont (which you mentioned that you do, but I'll explain it again anyway)
checking your configure file to make sure you've got the right database, go into phpmyadmin, find the right database name (matching the configure,php) click on that database name (on the left hand menu in phpmyadmin) then click export and save the file to your computer, this is the file we will be uploading again into your test sites database.
Then backinto phpmyadmin and find the database for your test site
(in your test site, includes/configure.php to check the database name, so you know which database you need to be in)
then once you're in your database (in phpmyadmin, left hand menu clikc on the database name)
then select every table in that database and at the bottom of the page, in the drop downmenu select "drop"
this should delete the full contents of the test site database.
We're going to replace that database though,
so still in phpmyadmin and in the (now empty) database for the test site, on the header menu click Import
then click browse and find the sql file you exported from your main sites database, and click go
This should upload the main sites database straight into the test sites database (after you click import,you should be able to browse the database and see tables for addresses, customers, products etc
Now you need to upload your images folder from your main site and put it into your test site, overwrite any files it prompt you to, these are just images for the demo store.
Now you'll need to upload the zc_install directory again. If you dont have on then download a full copy of zen-cart 1.5.0 from here
http://www.zen-cart.com unzip that file and upload the zc_install directory into the root of your test site.
Now check that your two configure.php files are not writeble. Its not a full install your doing so you dont want those two files writable at all.
check includes/confugure.php that should have permissions of 444 (not writable)
and check admin/includes/configure.php that should have permissions of 444 (not writable)
(you've probably renamed your admin directory, so substitute admin for the name of your admin directory)
now you're ready to run part of the install to upgrade the database for the new version
after making sure your configure.php files are set to 444 (not writable)
go to yourdomainhere.co.uk/zc_install/index.php
start the install process and it should flag an error that your configure files are not writable (which is right)
at the bottom of the page, it will give you the option to upgrade the database,
click upgrade database and it should tell you that 62 statements processed and 4 ignored, thats all good,
It should ask you for your admin logins at some point in the upgrade,
these are your main sites admin details, seeing as we uploaded the full database from your main site, now your test sites admin username and password are the same as your main sites admin username and password.
Once you've done that and it has alerted you to the 62 statements processed and 4 ignored
click done with upgrade and delete the zc_install directory out of your zen cart.
Now you'll need to log back into your test sites admin and select your template again, as the site will now be trying to load the template thats on your main site (the tst site now has the database for the main site, store settings and all)
once you re-select your template, and check your site, you should have all ylur products, store setting and info from your main site, all inside a new upgraded version of zen cart

The most important thing here is the permissions on your configure.php files, aslong as they are set to 444 (not writable) the install wont overwrite your database
