redownloaded the firmware and extracted the file to a known good flash drive that is formatted to fat32.
But thats after letting the xtreamer rest for more than a day, no connection whatsoever.
Reconnected the basics, hdmi, power and the flash drive (behind the xtreamer), and booted up.
Started the firmware update and thats it. Initially, i thought it was going to hang once again on the flash screen but after about 5 to 10 seconds, the progress bar started and thats when i know its going to work.