Mine just sat there when I inserted my disc. I rebooted my unit and then after bootup prompted me for proceeding with the update.
As for Mic Gain, there is no setting in the Z1. You'll need to adjust the bluetooth mic gain on your phone. Whether you can do this from your phone's config menus or with third party software depends on your phone. I have to use third party software and a usb cable to do the adjustment on my SLVR.
