Troubleshooting:

Q: I am getting the E64 error!

A.  Your firmware files are not being detected on your MicroSD card. You can recover your SD card using this method which uses the latest 1.06 firmware:

If you already have your firmware.bin file or dummy.bin file on your MicroSD card, make sure to save it on your computer first because this will reformat your MicroSD card.

What you need:

-USB Image Tool (Here http://www.alexpage.de/usb-image-tool/)  Direct Download link: http://www.alexpage.de/download/usbit/usbit.zip
-A XK SD card image file, updated to 1.06:  http://www.multiupload.com/8F39WKHCV6

Getting ready:

-Unzip USB Image Tool to a directory on your Hard Disk.
-Unzip the XK SD card image file into the same directory.
-A micro SD card, preferably the 128MB card that came with XK but if this is not working you can use any micro SD card you have available

Writing the image:

-Plug your SD card into a USB card reader, plug the card reader into your PC. Note the drive letter Windows assigns to it
-Run the USB Image Tool (on Vista & 7 be sure to run it as Administrator)   (Thanks to Wiisel for this)

1) Make sure the USB Image Tool is in "Device Mode"   
2) Select the SD card from the list in USB Image Tool
3) Click the "Restore" button in USB Image Tool
-A FileOpen Dialog will appear, select the XK SD card image file you unzipped previously
-Wait a few seconds for USB Image Tool to do its thing
-Eject/Safely Remove the SD card in explorer

Once your SD card is created, it will look empty however it is not.  It will look like this:

.

The firmware is installed in a partition.  Now all you need to do is place your firmware.bin or your dummy.bin file there, and your MicroSD card will look like this:

You now have a factory fresh micro SD card with XK FW version 01.06 ready to use.