First, install the software from the two DVDs included with the kit (do not change the default directories).
After that, you need to install the FRCLabVIEWUpdate2.0 (clicking on 1.0 will take you to 2.0) [fully unzip it, then install it]; and then run WorkbenchUpdateV1.2.1562.exe.
Just ignore the others (except for the source code for WPILib, you might want to look at that).
After updating, you'll need to re-image the cRIO with the correct software (and don't forget to update the driver station; see
http://usfirst.org/community/frc/content.aspx?id=10934).