You don't need to decompress the .bin file. Is the.bin file in any folders? I think the car will only locate the file if it is not in a folder.
edit: when you say ms-dos format, is that different from windows format? That could be your issue.
Delivered: 328i Sport, Mineral grey, black leather, aluminium trim/red accent, Comfort access, Rear view camera, Sunroof, heated front seats, high beam assist, lane change warning, surround view, parking assistant, xenons, professional nav, internet and more.