Hello,
I set up an action using your code in a test instance on my machine and stepped through it line by line. It looks like the status is actually being updated, but then some standard Innovator logic is resetting the status after the Action completes. To work around this, you could throw your login into a timeout so that the status is set after some number of milliseconds. I found 100 was good enough for my system, but you may need to play around with the delay based in your own system.
setTimeout(function() {
var statusId = aras.setStatus('Downloading.....', '../images/Progress.gif');
}, 100); // <-- May need to increase this time if the status is still not updating
Chris
Christopher Gillis
Aras Labs Software Engineer