Thanks to the great support team at Fitbit here is the resolution that worked painlessly. Now I am just curious why it just happened in the middle of the day:

For Mac:

1. Downgrade the Mac client by going to http://cache.fitbit.com/uploader/Fitbit-Uploader-for-Mac-1.0.2.dmg

2. Install client version 1.0.2

3. Close the Fitbit Tracker Set-up page

4. Update the firmware 

a. Open a Finder window.

b. Navigate to Applications > Utilities.

c. Double-click on the Terminal application to open it. A terminal window appears.

d. Now enter: FB_OPEN_MODE=”userFirmwareUpdate”/Applications/Fitbit.app/Contents/MacOS/Fitbit

e.The Fitbit application will launch and upgrade your firmware

f. Do not close the terminal window until after you have quit the Fitbit application.

5. Unplug the base station

6. Upgrade the Mac client by going to http://d290v5wu4xgrh.cloudfront.net/scratch/Install-Fitbit-1.8.2-2011-01-27.dmg

7. Install client version 1.8.2

After the update, reset the Fitbit. Place it on the base station then press the button on the bottom of the base station using a toothpick, pen tip, or paper clip.