Okay, I discovered what is wrong.
The machine never passes the "Initializing..." point. After a while it displays "Error 09". I trued restarting the machine 5 times and in each case the same happened - "Error 09".
I then unplugged the machine and plugged it back in. I started it up and the same thing happened again. I restarted it 5 times and still, it did not pass the "Initializing..." point.
During each of these incidents, the USB thumbdrive was plugged into one of the BDP-1's front USB ports. I switched the USB thumbdrive between the left and right port but it didn't help.
I then disconnected the USB thumbdrive and started the machine and it did actually pass the "Initializing..." point and displayed "Installing MPD" and eventually booted properly!
Just to be sure, I restarted the BDP-1 a few more times with no USB thumdrive and each time it booted properly.
Then I thought there must be something wrong with that particular USB thumbdrive as I bought it today. It is made by Intenso. So I plugged that thumbdrive back in and started the machine and the same "Error 09" appeared again. I dosconnected the thumbdrive and started the machine with no thumbdrives attached and it booted properly.
To be certain, I took out a few other USB thumbdrives, including the one provided by Bryston, and with each of these USB thumbdrives, the machine booted properly!
What's more, once the BDP-1 booted properly, I connected that Intenso thumbdrive, it too played properly. The machine just would not boot up with that Intenso thumbdrive already plugged into the machine.
Is this strange? Can anyone explain this please? Chris perhaps?
Antun