Yes, you should try the 3.0 WinCE files. If you went through the update(format) option, you wiped your My flash disk, and you need to restore it from a "backup". I am not sure what you mean by accidentally pushing option 1, because that is what you wanted to do in your step 7. "7. Select Update using SD/USB (format) option. This will format your FlashDisk removing any corrupted files on there that prevent the unit from loading." If you go through that step you no longer have a working unit and you need to complete the process by reinstalling all the data.
I suggest that you follow this guide viewtopic.php?f=34&t=25817 and try to upgrade to 3.0 software/maps. You can do the whole upgrade without using the on-screen keyboard (as long as your touch panel is calibrated and/or working). Use Total Commander to copy the data from your SD card to "My Flash Disk".
K tried the 3.0 files and same deal, It won't go past the 100% progress screen, I let it sit for 5 minutes other times 30 minutes nothing. I think I have tried it atleast 20 times if not more.
As for accidently pushing option 1 (the sd/mmc update option), technically option 0 is the correct one with the format in brackets.
I followed the guide in that link also noticed a few people with the same issue I was having although there was no response to the problems posted. One guy said he tried multiple times and on the 6th try it worked but the others never got an answer and that means I don't have one either.
I find it extremely difficult to believe that the files are wrong or curropt, or that my multiple SD cards are damaged in some way that it would cause this problem. As stated in that guide it should take within 2-3 minutes and after trying 20 times with different time frames on each I have no idea what I can do from here since this is the first step to getting anything else done.
Here is exactly what I am doing:
1) turning on car
2) pressing all four buttons on unit, this includes reset
3) I don't get a pop from my speakers but this could be due to me turning down the volume to zero last time i used it, so i'm holding the reset button for 5 seconds
4) after release of reset button im still holding the other 3 buttons (menu/map/eject)
5) once blue screen comes up i am releasing all 3
6) then i enter service code (up,up,down,menuu,left,right)
7) i then select update wince option
I push in the sd card into the slot
9) I select wince by sd/mmc (format) option
10) I wait, read progress creeps up to 100% and this is where i get stuck, nothing happens after it reaches 100%