Hmm,... I lost my USB stick at work so only option I have now is do it via laptop that has XP SP3.

Also, when I connected the USB cable by pressing and holding the 'U' key on the phone, on my laptop it recognized the phone device but said the device did not get connected properly and might not work properly.

However, as the instructions on the flasher update said that as long as you see the USB icon on the top right hand corner of your phone it means the phone is in flashing mode so I went ahead with command prompt...

I will restart my PC and give it another try.

Hope it will work ok this time.

Thanks for your advice cpitchford.