A resident application (RA) in set-top terminals (STTs) is updated by providing an upgrade channel application (UCA) over a network. Those STTs that are selected to receive the UCA are identified. The selected STTs download the UCA from the network. Once the UCA begins to execute on an STT, it retrieves the user parameters stored in the STT, and transmits them to a remote location for storage. A new RA is then installed in the STT. The original user parameters are converted at the remote location to become compatible with the new RA. The converted user parameters are transferred to the STT for use by the new RA.