The extended rom has nothing to do with it, I have mine empty and I was still able to flash no problem. One last time, and I know this is annoying if you've already tried it, but hard reset your device, make sure it doesn't set up, put it in bootloader mode, install Kirvin's Clean & Simple AKU 3.5, and start the install. Is this where your problem starts, and is it giving you the error on your pc, or the ppc? I assume you meant your pc, and your pc is referring to your ppc not having enough memory, etc etc. Super dumb question, but you're using a 6700 right? If it's hard reset, then there is nothing BUT memory available to perform this task. You have the latest version of Activesync on your PC? After the install, I do a hard reset, and then you're good to go. If this doesn't work tell me so I can come up with another reason why I must be right and you must be doing something wrong...
lol