I have 2 tables:
You need to change the inner table and give a different allias to the columns that are similar. This should work.
update table1
set [Lattitude1] = x.[lat]
from
(
SELECT IDInfo [id], Lattitude [lat] FROM
table2
) x
WHERE
StationID1 = x.[id]
In your particular case its not necessary to rename Lattitude to lat, but if you end up updating a table with itself and force yourself into giving the columns different names, it will save you headaches down the road.