Did you connect the stereo 3-pin cable between the two jacks on the TIU and then power it up? The update won't work if you don't have the TIU configured for an update. For DCS 5.0 (not the current release BTW), it's looking for a file named tiu5p0.DCSt. If you can't find that using Windows Explorer, that's one problem. You have to execute the downloaded .EXE file to extract the remote and TIU upgrade files.
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