/* This is my plugin activation_hook. What am I doing wrong? Why are the options not being updated correctly? */
function cud_install_options(){
	$defaults = array(
		'custom_upload_dir' => '',
		'all_parents' => true, 
		'flatten_hierarchy' => false,
		'only_leaf_nodes' => false, 
		'only_base_nodes' => false,
		'test_ids'	=> '-1',
		'template' => ''
	);	
	$old = get_option('custom_upload_dir');
	if(is_array($old)){
		if(!empty($old['template'])){ //update deprecated placeholders
			$newtags = array('%post_id%','%postname%','%author%','%monthnum%');
			$oldtags = array('%ID%', '%post_name%','%post_author%','%month%');
			$old['template'] = str_replace($oldtags, $newtags, $old['template']);
		}	
		$defaults = array_merge($defaults, $old);	
	}		
	update_option('custom_upload_dir', $defaults);
}