Secret ingredient here? (i think). Don't do this stuff on a Mac. I believe that the Mac file format, even the MS-Dos Fat32 variant that you can do from Disk Copy is just different enough that it corrupts small parts of the files being copied onto it. So the install works but there are sub system problems due to key files being slightly corrupted. The result is a system that sort of, kind of works sometimes.
Once I went to a PC, formatted the 2gb Flash disk (long format), followed the steps, it worked like a charm. Very, very happy with the Avic. The only thing I haven't figured out is how