People experiencing issues with the SOE Station Launcher will be pleased to hear the fix is in as of about 9:30 pacific time Tuesday.  In the "About" dialog, it will appear as version 1.0.7.1 release-728753.  Dan Kinney posted on the Station Launcher forums:

We have found and fixed a bug in the code that deals with the update check, which causes it to fail improperly...causing a FULL UPDATE.  Even after that update, the check is still incorrect which leads to the vicious circle....

I am extremely grateful for all that provided feedback and help to track down this bug.  This is extremely embarrassing and we humbly ask for your forgiveness.

He added:

If you have previously been caught in the dreaded "update loop", you will have to go through a FULL SCAN after this update.  This is significantly shorter than the FULL UPDATE.  After which, your state should be up to date and will only do updates as needed.