gilza and symonray, are you putting the Zip file on an SD card, then putting that card into the slot on top of the IQ? The update will not work from the internal 2GB card if you transfer it to the IQ via USB. It'll only work if you put the Zip file on an SD card, then put that SD card into the IQ.
On the other hand, you may just have a corrupted Zip file. It happens. Try downloading it again.
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