Mac 7.0.2 Smart Upgrade

I am having difficulties getting the Smart Upgrade to work with Mac OSX 10.4 with Release 6.5.4 installed. I have had the PC working fine, but on the Mac install there is no response from the client (no prompt to upgrade).

The only package from Lotus is the DMG file and I am not sure a drive package would load properly. Does anyone know how I should package the installer and what could cause the failure of the client to recognize? I have the installer directly on the kit document (not in a share).