I finally had some time to try this hack over the weekend for my 06 300C, and it worked perfectly on the 1st attempt. Thanks to everyone that spent time experimenting with it. This method is probably the cheapest(all freeware and a single layer disc), so here are the details if anyone is interested. This is for people that already have an AE disc installed.
-follow the instructions in the first post exactly thru step 7 then continue to step 8 below
8)Delete the largest file "U0001_02.BAS" which is ~3.8GB so everything will fit on a single layer disc
9)Create an image using Folder2iso with the remaining files
http://www.trustfm.net/divx/SoftwareFolder2Iso.html-folder2iso only gives the option to add a label and select the character set, so enter a label if you want and use the iso8859-1 charset
-the ouput iso file can be named whatever you choose, i simply used "AE.iso"
10)Burn the iso to a single layer disc using DVD Decrypter
http://www.dvddecrypter.org.uk/ with the following settings
-Mode > ISO > Write
-Tools > Settings...
-Under the General Tab, set File System to Parse to "UDF"
-Under the ISO Write Mode Tab, set Write Mode to DVD and Write Type to SAO
-Burn at 2.4X (I used Verbatim +R that was manufactured in 2002 in Singapore that has been sitting around in my desk...the drive is also ancient, a Plextor PX-504A 4Xmax)
Inserted disc into navi
Navi went through the update routine and hung on the "Loading" screen because of the deleted file
Replaced disc with the original AE disc and everything loaded normally
Now I can use all menus while in motion

Hope this helps someone that hesitates due to lack of software or DL discs.
Thanks Vindes