What software version are you on? It has to be 161 otherwise you can't upgrade from anything below it.I've just bought a L29 C432 and this method does not work.
Have tried with USB-memory and a USB-disk.
The file structure looks like this:
dload
--update_sd.zip
CLT-L29_hw_eu
--update_sd_CLT-L29_hw_eu.zip