Thank you all for your help, moved the files/folders to

C:\maemo\flasher-3.5 as I noticed that windows didnt like the space in the path "program files" and renamed the file to "FW.bin" and with the use of the full path the problem was resolved.

Thank you all once again, I just got the phone today and wanted to upgrade it before using it as I always do with my nokia phones, now I can start configurating it as I like it