redesigned

After upgrading:
delete all files except config.xml from the following directory:
/app/code/core/Mage/GoogleCheckout/etc

go to www.mywebsite/downloader then reinstall the package called Lib_Varien

go to /app/design/frontend/base/default/template/checkout/onepage/ file payment.phtml
(add this id to the fieldset)
<fieldset id="checkout-payment-method-load">
        <?php echo $this->getChildHtml('methods') ?>