Okay, I am going to attempt to upgrade Sneezy to Wheezy. I'm not sure what the difference is but Wheezy seems better. I'm still new with the terminal commands so... I just might end up breaking my PanDebian I'll follow the steps in that link and skip step 1 like you did. I've used the vi editor with the piratebox config... wow, it's once crazy editor. You try to type and learn that letters make the editor do things. It took me all day to learn to change a line with it.yeah the wheezy option is broken in the installer, suppose you could try to drop a compiled version of xzcat into the appdata folder of the installer PND.. but that is a bit overboard..
However I've used this tutorial to apt upgrade squeeze to wheezy on pandebian.
Although I didn't bother backing up the /etc directory in the first step.. It wasn't necessary.