Downloading PS3 Updates on to a Lexar 1GB USB Flash Drive

[#1]

Hi Guys,
            I am trying to download the latest updates, for PS3 on to this USB Flash Drive.
I have not updated the firmware before, but thought it was a good idea. The problem is, every time i try to download from the card i get the message no applicable update was found. Does this mean that my Playstation is up to date or am i doing something wrong ?

[#2]

I'm pretty sure that some earlier firmwares had issues with usb drives. Assume that you have a 40gig ps3? Latest firmware is 2.54 i think and came out early summer. I'm not in to check it out at the mo

[#3]

Check that you have created the correct directories on your flash drive and that you save the update to the UPDATE directory, see info from playstation website:-
To transfer the update data to your PLAYSTATION 3, save the file to a PS3 compatible storage device such as Memory Stick, Memory Stick Duo, USB drive or PSP.
Before starting, use your PC to create a folder named 'PS3' on the storage media or USB device. Within the folder, create a folder named 'UPDATE' (This folder name is case sensitive and must appear in all capital letters). Once the UPDATE folder has been created, download the PS3 system software update to this location.
Once the update data has been saved, disconnect the storage device and connect it to your PS3 via the slots under the slot cover or the USB connectors depending on the device you're using.
Once connected, navigate to Settings on the PS3 Home Menu, select [System Update] and then [Update via Storage Media]. Select the connected device and your PS3 will install the update data stored there.