a hard disk is required, because the firmware is stored on disk.
the error that you see is most likely due to a problem with the hard disk, so that the firmware cannot be installed on it.
you could try to put it in a PC and check what is on it. there should be two partitions . one with 128mb and another with the rest.
if that is not the case, then something is wrong with the drive... master/slave jumper ? not working at all ? draws too much power ?
anyway... if you get the drive working, then it will still not work, because the un-modified firmware will only fully start when you have a
IPTV contract and are connected to the correct multicast network.
I guess that is not the case, which means you need to modify the firmware, which is impossible until you install the modchip that is described here on the forum.