I wanted to Post My Solution on this one.
I started by setting up an FTP server service on my MAC. Google is your best freind here but it is very simple.
Then I copied the AOS image onto the root of the FTP server
Next I connected MAC to the same network as the controller (in my case static IP address and just plugged into Eth 1/0)
then from CLI I ran these commands - it worked like a charm
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(Aruba651) #show image version
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Partition : 0:0 (/dev/mtdblock9) **Default boot**
Software Version : ArubaOS 6.1.3.5 (Digitally Signed - Production Build)
Build number : 35523
Label : 35523
Built on : Fri Sep 28 07:46:05 PDT 2012
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Partition : 0:1 (/dev/mtdblock10)
Software Version : ArubaOS 6.1.2.2 (Digitally Signed - Production Build)
Build number : 29541
Label : 29541
Built on : Tue Aug 2 07:25:18 PDT 2011
(Aruba651) #show memory
Memory (Kb): total: 387684, used: 305848, free: 81836
(Aruba651) #show stora
Filesystem Size Used Available Use% Mounted on
/dev/mtdblock11 156.0M 117.2M 38.8M 75% /flash
none 300.0M 1.7M 298.3M 1% /tmp
/dev/mtdblock9 50.0M 24.6M 25.4M 49% /mnt/img0
/dev/mtdblock10 50.0M 24.3M 25.7M 49% /mnt/img1
(Aruba651) #copy ftp: 172.16.0.10 <user> ArubaOS system: partition 1
Password:********
Copying file:................
File copied successfully.
Saving file to flash:
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The system will boot from partition 1 during the next reboot.
(Aruba651) #Shutdown processing started