Hi Keith,
The download file needs to be named btubeV8.tar.gz with no other characters e.g. (1) or spaces. You do not need to unzip it either.
Delete any versions you already have and download the file again.
Make sure the memory stick has no other files on it (not 100% necessary but as you are having problems it would be a good idea). Copy the btubeV8.tar.gz file to the USB stick.
Plug this into the BB1 and power on.
Use the top control to go to the Maintenance menu and select USB Upgrade. Once loaded the BB1 will reboot (this is a good indicator that the software has loaded).
Now go to the Settings menu and select Bluetooth Upgrade. The BB1 should reboot (again a good indicator that the software has loaded).
Power off the BB1 and then power on again - this saves any setting changes.
On the Flip 3 do a factory reset to clear all previous pairings - on my Flip 2 this is done by powering on and then pressing the Vol + and Phone buttons together until the Flip beeps and turns off. Power on the Flip and the Bluetooth led should flash. Go to the BB1 and open the Main menu and select Bluetooth Out. The BB1 will list any BT devices it finds. Click on 'Flip 3' to pair.
If 'Flip 3' is already listed 'unpair' it, let the BB1 discover it again and click on the newly found 'Flip 3'.
Paul
Brennan Support.