Ok, well I for one would like to know the answer to this. I just upgraded both of my computers to Windows XP and now I can't update my player. All I can do is use the serial port. No way am I going to upload tunes via serial. Pardon me for only having a Mark 1 unit. :)

For some reason it seems to get syncronization problems on step 2. Sometimes it will get to step 3, but rarely. When it does get there you can't restart the process, you get a invalid cookie.

I installed the USB driver properly.