I did it with the kindle touch as well, but I had to use
ikiller's method
I don't know why you're not seeing the system folder. I'm using windows and have show hidden files and folders and it's sitting in the root folder of the kindle when I plug it in.
I've had to reset it to factory defaults several times while playing around with it with no damage done to the kindle. The only down side is that you have to re-disable the ads.