1.) now 'Updates' node (under WPP) doesn't has entries of published catalog, it cleans when I go for connect/reload option.
You need to create updates to see them Under this node. Please, read the documentation to learn how to create an update.
2.) after browsing catalog file under WPP, it fills full path under text-box, list down available updates under catalog but 'Open Catalog' button is still not enabled.
As I said in my previous post, you don't have to click on "Open Catalog" button when you browse to a .xml or a .cab file. WPP open automatically the file. The button "Open Catalog" become available only if you manually change the full path to the file and if the file really exist and is a .xml or a .cab