Cannot update W980

I've recently purchased a W980 and the software version is 1205-1464 R3DA026 090902.
I tried to use the update service on my PC, but when I turn off the phone, reinsert the battery and hold the C button, that balloon pops up on windows saying SEMC Flash device, and then the computer freezes (Win XP home, service pack 3). Never seen Win XP freeze before:rolleyes:

I downloaded XS++ from here and followed the guide, same thing happens.

Also, I cannot use the FM transmitter, says due to some legal restrictions in my country I can't use it.

Please help me.

Thank you.

try with windows xp professional sp1 or sp2

have you install the SEMC driver? or maybe try to hold 2 and 5 together instead of holding C button