Made it to the hacked 2.004 fine, but the SD1 update didn't work (just sits there). Currently my unit is in a locked state (lost power, stupid me put a password on it and forgot it), and I was told of success stories with a Z130bt upgrade that the upgrade bypasses the security and the unit can be unlocked.
I used the same card that worked for reading mp3 and avi files when the unit was functional, and did the first upgrade flawlessly. Any clue? Should I be pressing any buttons on boot?