Xell not reading updflash.bin

Here's a video of what I keeping getting:
https://www.youtube.com/watch?v=5XkDRDykfSk

 

1] Don't use TWO USB devices.

2] Format a USB flash drive to FAT32.

3] Copy over the updflash.bin to the ROOT of the drive.

4] Plug in the front of the 360, not the back.

 

Just keeps saying "MMC Console Deteced, Skipping sda0:\updflash.bin"