Index: modules/update/update.manager.inc
===================================================================
RCS file: /cvs/drupal/drupal/modules/update/update.manager.inc,v
retrieving revision 1.23
diff -u -p -r1.23 update.manager.inc
--- modules/update/update.manager.inc	26 May 2010 11:50:58 -0000	1.23
+++ modules/update/update.manager.inc	12 Jul 2010 07:10:42 -0000
@@ -539,8 +539,10 @@ function update_manager_install_form_sub
   }
   elseif ($_FILES['files']['name']['project_upload']) {
     $field = 'project_upload';
-    // @todo: add some validators here.
-    $finfo = file_save_upload($field, array(), NULL, FILE_EXISTS_REPLACE);
+    // Pass in an empty list of file validators and let the arcive extraction 
+    // code handle validation.
+    $validators = array('file_validate_extensions' => array());
+    $finfo = file_save_upload($field, $validators, NULL, FILE_EXISTS_REPLACE);
     // @todo: find out if the module is already instealled, if so, throw an error.
     $local_cache = $finfo->uri;
   }
Index: modules/update/update.test
===================================================================
RCS file: /cvs/drupal/drupal/modules/update/update.test,v
retrieving revision 1.13
diff -u -p -r1.13 update.test
--- modules/update/update.test	4 Jan 2010 21:31:52 -0000	1.13
+++ modules/update/update.test	12 Jul 2010 07:10:42 -0000
@@ -493,3 +493,49 @@ class UpdateTestContribCase extends Upda
 
 }
 
+class UpdateTestInstallCase extends UpdateTestHelper {
+  public static function getInfo() {
+    return array(
+      'name' => 'Install new module functionality',
+      'description' => 'Tests that we can use the update manager to add new modules to our site.',
+      'group' => 'Update',
+    );
+  }
+
+  public function setup() {
+    parent::setUp('update');
+    variable_set('allow_authorize_operations', TRUE);
+    $admin_user = $this->drupalCreateUser(array('administer software updates', 'administer site configuration'));
+    $this->drupalLogin($admin_user);
+  }
+
+  /**
+   * Test that we can add a new module from a local file.
+   */
+  public function testInstallNewLocalModule() {
+    // Images are not valid archives, so get one and try to install it.
+    $invalidArchiveFile = reset($this->drupalGetTestFiles('image'));
+    $edit = array(
+      'files[project_upload]' => $invalidArchiveFile->uri,
+    );
+    $this->drupalPost('admin/modules/install', $edit, t('Install'));
+    $this->assertText(t('Cannot extract temporary://@filename, not a valid archive.', array('@filename' => basename($invalidArchiveFile->uri))), "Invalid archive was not extracted.");
+
+    // Try to install a valid archive, for an existing module.
+    $validArchiveFile = drupal_get_path('module', 'update') . '/tests/aaa_update_test.tar.gz';
+    $edit = array(
+      'files[project_upload]' => $validArchiveFile,
+    );
+    $this->drupalPost('admin/modules/install', $edit, t('Install'));
+    $this->assertText(t('@module_name is already installed.', array('@module_name' => 'AAA Update test')), "Existing module was not reinstalled.");
+
+    // Try to install a valid archive, valid module.
+    $validArchiveFile = drupal_get_path('module', 'update') . '/tests/new_test.tar.gz';
+    $edit = array(
+      'files[project_upload]' => $validArchiveFile,
+    );
+    $this->drupalPost('admin/modules/install', $edit, t('Install'));
+    $this->assertText(t('To continue, provide your server connection details')), "Authorize.php prompts for security credentials");
+  }
+}
+