This is what worked for me last night:

The key appears to be starting totally from scratch.

1. Take a new mini-SD card or take one you have and reformat it--wipe it clean of ALL files.
2. To that clean card, copy the new *.bin file from the firmware update folder and THAT FILE ONLY.
3. Put the card in the camera (already attached to the bird) turn it on and let it do it's thing. DO NOT turn on the controller. If after ten (10) minutes nothing happens, then you can be fairly confident that the bird has already been updated on previous attempts. Otherwise the camera will beep and begin a fresh install. Once the tail light goes from flashing yellow to flashing green, you know it's done.
4. Once that's done, turn off the aircraft.
5. Get a new thumb drive or reformat one you have, again, to wipe it clean. Copy ONLY the *.bin file onto the thumb drive just as you did above.
6. Insert the thumb into the controller and turn it on. DO NOT turn on the aircraft. After a minute or more it will start the install. Once it's done, the blue light will turn green.
7. Turn off the controller and remove the thumb drive.
8. Turn the controller on again.
9. Turn the aircraft on again.
10. They should now communicate with each other.

I hope this works for everyone having the same issue I had. Went flying this morning without a single problem. Best of luck!

Thanks, Steve!

EDIT: Blade pointed out to me that this is not a "fix" so I amending the heading.

Does this look good to you?

After you have completed the firmware update on the aircraft, check the .txt file that will now appear on the card. If you open this it will tell you whether the update was successful or not. If it suggests there is a problem, DELETE the .txt file and start again... Do the same for the transmitter and you will be good to go....

pidetectives@ya Posted at 2015-2-28 23:12
Does this look good to you?

Actually, you need to check the LOG file in the MISC folder (another txt file). You can check you file entries with the one shown here:
http://www.inspirepilots.com/thr ... ailable.1338/page-7

Ignore the red line, it was correct.

Steve,
Thank you very much for putting together the procedure...
I have been reading all of the comments on the latest firmware update since it came out and yours to me seems the most straight forward approach....
It is greatly appreciated...

Awesome, thanks for the play by play!