I have just successfully updated a unit that had the older firmware version on a Windows 7 HP notebook. First, I purchased a Rocketfish adaptor with Blutooth 2.1 + EDR. These devices come with a driver CD that you must install before it will recognize the head unit correctly. Windows will also find its own drivers, but these will not be enough; you have to install the software that comes with the device.
You might have to try connecting a few times in order to pair the units; you have to make sure they are both connecting at exactly the same time. You could try searching for devices on the head unit itself, and then connecting from there once you see the computer. Both units must recognize each other and be connected before the correct options will appear. Once they have been successfully paired, they will reconnect very easily after being disconnected, which becomes important later.
After you have both units paired and connected to each other, follow the second set of directions provided by Alpine; "If the Bluetooth Update Failed...". It says to open the Alpine "UPDATE" folder on your computer and have it ready. Then, disconnect the device from your computer. This is important. On the head unit, go to "FW UPDATE", and select "YES" so it says "WAITING". At this point, reconnect to the head unit from your computer, and then drag and drop the updater file ONLY into the Alpine "UPDATE" folder that you opened before.
The file should transfer and your computer will disconnect from the device. Then the unit will say it is updating and not to touch. Don't touch anything on the computer or the device or turn off the power. When it's done it will say "FIRMWARE UPDATED PLEASE PRESS ANY BUTTON", but make sure you press the BACK button, then turn your car off and on.
A lot of that was just repeated from the pdf they provided, but with that configuration it worked for me on the first try. This was, of course, after trying with my macbook and the same dongle and the wrong drivers and wasting lots of time. If you have access to a Windows 7 computer and follow all of those steps exactly, there's a good chance it will work.
I was really hoping I'd just have to plug in a USB for this.... 😠