Could be your firewall preventing the transfer, but you can easily upgrade the firmware manually by following the directions here.
The Updater amounts to little more than nag-ware once the firmware update is downloaded. Every time you plug your player into your computer it will ‘phone home’ looking for updates, slowing your system down in the process. No mor often than what updates come out, this can get real old real fast.
The SMC is also problematic. With the Fuze+ you can use any video conversion program. Here are the specs.