There have been many posts in the past regarding users having difficulty finding a USB flash drive (over 1GB capacity) that works with the HDR. I have just performed the version 20 firmware upgrade using a recently purchased 4GB flash drive without issue.
The drive I used was a Play.com own brand 4GB
http://www.play.com/PC/PCs/4-/119931...rlrefer=search
The drive I used was a Play.com own brand 4GB
http://www.play.com/PC/PCs/4-/119931...rlrefer=search