Updating ADW Launcher for Cyanogenmod 7 I'm running Cyanogenmod 7.2.0 Sholes on Motorola Droid with the ADW Launcher. The free version on the Market is an updated version of the one in my system's mod. Is there anyway to update it in the mod itself, instead of having to download it and have them be two separate apps?
System apps are always installed in /system but when system apps get updates, they are downloaded to /data as an update to the /system app.

If you download an app from the Market that its already installed in /system, it will upgrade the one you already have, but it won't install it as a duplicate.

In your specific case, if you find an updated version of ADW Launcher in the Market and you download it, you will be able to use the updated version of ADW Launcher if its the same app as the one in /system. If Cyanogenmod has a modified ADW Launcher on /system and you install the original in the Market, you might end with two different launchers (I haven't tested this part, so I don't really know if it will be an update or another app the one it installs).