Unable to update E3 Flasher - No blue LED lights.

Hi! I have been trying for about a week to get my E3 Flasher working and the idea is to downgrade the PS3 from 3.70 to 3.55.

Me and a friend attached the clip about a week ago. See picture below:


I then started the PS3 and tried to update the E3 Flasher with update.bin on the root of a FAT32 formated micro sd card.

I did not get any blue lights to light up and googled the issue. Someone suggested that the clip was on backwards so I opened the PS3 again and turned the clip around. See picture below:


With the clip turned this way the PS3 did not start (no picture on tv). I removed the clip and E3 Flasher entirely to check that the PS3 was still working. After being sure of the PS3 still being in working condition I attached the clip in the same way as in the previous picture. Still no picture on tv.

I again turned the clip as in the first picture and got picture on the tv. However, there are no blue lights lit when I try to update the E3 Flasher.

I again turned to Google and found out that the E3 Flasher tray had to have the white paper still on it for the E3 Flasher to work. I had removed the white paper when installing the first time because I imagined it would be in the way of the screws. I bought some electrical tape and taped the entire bottom of the tray and assembled the PS3 again.

When I started the PS3 I accidentally had one of the switches in the down position when it was supposed to be up and then I could see that all the blue lights can light up. But when I insert the micro sd card with update.bin on it and have switches 1 and 2 down and the rest up there are no blue lights what so ever.

I have tried formatting quick, formatting slow, using my PC and using my Mac. But no luck getting the E3 Flasher to take update/show blue lights with switches 1 and 2 down and the rest up.

I have not scraped anything of the clip attached to the NOR as I found it to fit pretty good. The PS3 starts fine using the eSATA station connected to the E3 Flasher.

This is what the PS3 looks like when I start it right now:


Any suggestions to what I can try next?