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I saw the same thing. To get around this I:
1. Made sure it was fully charged.
2. Made sure the bin file was the only thing on the sd card.
3. I made sure I had no large books on the bebook memory.
What I noticed is that it was backing up existing files from its memory. If you bumped into this problem a couple of times it will have multiple backups.
I get farther in the process but I still have problems getting past step 5 in it upgrade process.
Good Luck
G
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