Thanks Carlo. I have been through the USB stick then exit a few times already but to no avail. I'm going to try a completely new download from the website and try again.
That didn't work either.
However, I followed Roadrunner's advice and extracted the KAOS.bin from the zip file and copied only that the USB. It worked OK after that which is strange as lastnight updated to 7.1.10 straight from the zip file. He Ho, It's working now