^^
before anyone goes to these draconian steps, try formatting the flash drive first. others are getting it to work just fine, even with 16GB drives.
1. download the file from Pioneer, preferably not using wireless, just to be safe you had no glitches in data transfer
2. format a flash drive no bigger than 8 GB (16 GB tops) in FAT32/FAT16, preferably FAT32 (bigger drive capacity supported, at least that's what I remember from my DOS/Win 95 days

even smaller drive if you have one.
3. un-zip the zip file on your hard drive, not the flash drive
4. copy the bin files NOT the extracted folder to the root directory of the USB drive
5. insert drive, and see if installation proceeds
6. if it gives the error message, then try a smaller drive
Edited by ss9001 - 12/14/12 at 8:13am