I was getting the same issue about format failed so I used windows xp pro sp3 under vmware to run the program and then it was able to format, it gave me 4 slots then I wrote the image to the first slot.
I made it up to step 5, I put in the usb stick and get to that flashing part but I get a message
Flashing the whole NOR is disabled.
Name your Nor dump properly to enable FLASHING ONLY THE EID0 Section.
Input [*.EID0.NORBIN] must be 16mb and also be from your Console.
Only 192 bytes will be written to flash (EID0).
I just hit ok but nothing happens.
Under the debug settings on xmb, I have Blu-Ray Disc Access to BD Emulator (USB) enabled but I do not get the disc icon under game category like step 7.