I was having EXTREME difficulting with these steps until I realized that I was suppose to take each of the 4 "unzipped files within the "SansaC200P1_01_00" folder and place them in the 16MB-FORMAT directory INDIVIDUALLY. I was placing the zipped folder in the directory. Everything executes as expected, but the firmware never get updated. I even pulled out my Windows XP machine to try it (same result with Vista or XP). Now I can proceed with the ROCKbox upgrade !!! Thanks for all your patient help in this thread.
Files ending in .7z are archives like .zip and .rar, you need to extract the contents using software that's compatible. Search the web.
To quote the wiki:
"To update the firmware, copy the unzipped files into the 16mb drive, unplug the player, and release the hold switch."
Can you think of a clearer way to explain that step? (There is no sarcasm in my voice here, I'd actually like your opinion).