Talk module won't update

After getting hit with a XSS problem, I am trying to close the holes that let some one script my site. Problem is, when I try and update the Talk module from 1.2 to 1.3 drupal isn't recognizing the update. I've gone so far as to completely throw away the 1.2 folder and then copy a fresh 1.3 version of talk in, run the update script, but drupal still thinks the talk module is version 1.2.

Any ideas on what the issue is, or is this the result of being hacked?

Hokuspokus