Hmmm. I'd suspect the issue here is the "Iomega thingy." I presume that is a BT
dongle or the like; perhaps the firmware upgrade is only through the Broadcom (or fauxBroadcom) BT
device in the Mini. I upgraded mine (with the Al keyboard) and it appeared that there were two parts of the upgrade, one for the KB and one for the computer. I was surprised when the Apple SW Update asked me to make this firmware upgrade on my MBPro AND my two minis given that I use the same keyboard with all of them. I let it happen on each of my machines and all seems to be working fine. I do notice that the BT
keyboard is considerably more responsive in the handshaking phase as that was a major point of exasperation for me. Good luck with this.