:sigh:
You are supposed to think about solutions you are given, not try to use them blindly...
Try:
UPDATE a SET CurCstType = 'R' FROM [CustmrSrc] a
JOIN (SELECT CustName FROM [CustmrSrc]
GROUP BY CUSTName, DATEPART(ISO_WEEK,PurchaseDate)
HAVING COUNT(PurchaseDate) >= 5) b
ON a.CustName = b.CustName