Thanks for the reply technut. After reading the other thread you linked, I think it may have to do with the fact that Win XP Pro asked me to install the Flash USB driver before I attempted to flash. If I had to do it again, I would do this instead:
1. Plug in USB cables to X1 and PC
2. Power on X1 and let it install/autodetech whatever USB devices it recognizes.
3. Power down X1
4. Power X1 back on with both keystone buttons pressed and let WinXP install/search for the correct driver for FlashUSB
5. Power down X1 again
6. Start up FlashUSB
7. Select x1.dld file
8. Power up X1 and you should now be "connected"
9. Hit "Download" and let it flash while you pray to the Infocus gods.
I skipped steps 3,4,5 and I think that may have caused my problem. My steps that I initiall followed were 1,2,6,7,3,4,9.