OK, finally the solution!!!!
This really should be a sticky as it costed me hours to get the update working.
The problem lies in the format the SD is being formatted. Just formatting using FAT16 is not enough apparently with windows as it does not support the SD card protocol!!
There is a solution though.. use the SD card formatting tool from this link:
http://panasonic.jp/support/global/c...formatter.html
Used this, copied the firmware and presto it works!!!