I had to call the diamond line the other day because as usual the 4th qtr double your points promo didn't credit any bonus points for my Nov 1st to Jan 31st stays. As soon as the agent answered she greeted me by name and said welcome to lifetime diamond status we appreciate your business, so yes the profiles are updated. She told me that as soon as the call came in her computer popped up with a message that said "Congratulations! You’ve earned Lifetime Diamond Status with Hilton HHonors. "
Just as it does in the account overview when you sign in. She also told me that all of the hotels will see this when I check in. She also told me that I will have a much better chance of getting upgrades at check in than other diamond members. The front desk manager is supposed to check every morning for LTD members arriving that day and assign them the best available room.