pi@rpi:~ $ sudo apt-get install update
Reading package lists... Error!
E: Unable to parse package file /var/lib/apt/lists/mirrordirector.raspbian.org_raspbian_dists_jessie_main_binary-armhf_Packages (1)
E: Problem opening /var/lib/apt/lists/mirrordirector.raspbian.org_raspbian_dists_jessie_contrib_binary-armhf_Packages
E: The package lists or status file could not be parsed or opened.
  • What is the output of cat /var/lib/apt/lists/mirrordirector.raspbian.org_raspbian_dists_jessie_contrib_binary-armhf_Packages? – Philippos Apr 4 '17 at 5:54

You issued the wrong command here. Debian package manager works like this:

  • first, you update the list of packages with apt-get update. This downloads a list of packages which a server currently has to a local file in /var/lib/apt/lists/

  • second, you install/upgrade packages from that list, using apt-get install package_name or apt-get upgrade, respectively.

Your command jumps to step 2 right away and tries to install a software called update which presumably doesn't exist.

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