make sure your memory stick does not have a lock on the side of it also leave it in your box for a min then turn the box on wait another min and then try go into the usb menu, or when you press men usb does it say 'insert usb' when its already in the box? also when you do get the usb stick working dont forget to do a factory reset!! and put your keycode on, and press set default key.
I have tried another stick and it worked. I copied the new firmware onto the receiver and rebooted it. The new firmware is on the box but when i scanned the chanells they all apeared but are still scrambled. I will read more post to see what else i have done wrong. Thanks all for the help so far.
press menu go into system info and press 1004 and another menu will appear put keycode on and press set default key.