I would like to review your configuration. There should be no issues to update repositories or upload files.
Could you to attach a troubleshoot file to your question. Please, replicate the issue, then access router's WebUI, go to System -> Administration -> Troubleshoot section and download troubleshoot file from there. The logs in the file might provide more insight into the issue.
Also, could you specify, what happens, when you upload a downloaded package? Is it for correct mipsel_24kc architecture?
The vpn-policy-routing package for RUT241 can be downloaded from here.