Also failed on USB update attempt -- 08/09 build. I'm pretty sure I have the old firmware. I've experienced transmission/power loss on several occassions similar to what the 2009 M series were experiencing that required a FW update to fix. For example -- when I approached an intersection where I was going to make a right turn and touch the brake... I changed my mind when I can see that I can beat the oncoming traffic, so I quickly changed to the gas pedal -- but there's no power for about 2 seconds! So instead of quickly making the turn, I'm helplessly rolling around the corner waiting for a T-bone. The accelerator kicked in just in time so there was no harm except for an angry oncoming driver.
I have a 2009 328xit with performance and sports pkg including paddle shifters. is it possible that I have the same issue as the 2009 DCT M cars?
BTW - Sandisk Cruzer USB2 took 50 minutes to write all the data from my laptop. The Sandisk Extreme USB3 took only 3 minutes! When I stuck the Extreme in a USB2 slot and tried again, it took about 20 minutes. There appears to be some benefit to a high-end USB3 stick even in a a USB2 port. Of course the Extreme costs as least twice as much as a low-end USB3 stick -- but costs a bit less than the comparable Lexar Triton drive. YMMV.