I rambled on this one and I'm tired, so hang in there and you'll make it through. It DOES work though. Works with 4.92 and all other firmwares. You shouldn't have to use a different USB storage device either, unless a PS3 device just can't recognize it. As long as it's formatted in FAT32 and your directory structure is PS3/UPDATE/PS3UPDAT.PUP you should be fine.
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PS3 "No applicable update data found" FIX | NatokHD