played around with the DTS package little bit..well i think to use th mentioned method.. i still need file system access to the Db server or the network share path where the CSV file is stored..
i think an ASP page with all the data from the CSV file in it can be made which will do all the opreation but the amount of data to be inserted is around 2.5 MB when in a raw text format (.asp, .csv, .txt) and i bet that would kill the server and hosting ppl with be mad @ me 
the only viable solution i can think of is to import the CSV into MDB, then upload it to the hosting and make some ASP which will first delete all the records in the table and then read te MDB and insert the records into the table on SQL server in batches of 50 or 100 so they dont eat up all the processor cycles and kill the web server
OR
import CSV into MDB and then use the access upsize wizard to export all data to SQL server with a differnt table name..well this would take long time tho but i dont think more than 30 minutes in a 500+K upload speed...after all data has ben upsized sucessfully.. use ASP or enterprise manager to delete the old table and rename new table to coressponding name and change coloum data types..
i prefer to do the table renaming and deleting using ASP bcuz that way i could update the Db from anywhere regardless the availibility of enterprise manager and top of everything it just sucks when usuing enterprise manger to manage database remotely unless u got T1
suguesstion for a better solution are still welcome..bear in mind that the table is required to be updated every 30-40 days and all old records MUST be deleted before new ones are inserted.. ..