[hdmkv]

Sounds like you have the English version box, which is good.

Re: firmware update, it should be a FAT32 formatted USB stick with nothing in it except update.zip. Plug in power, plug in USB stick, but don't turn on Q5, stick a pin/toothpick in the reset hole and HOLD it there, press power button and wait until Android logo appears on your TV, and now let go of the pin/toothpick from reset hole.

Do I need to extract the zip file when putting it into the USB stick or just copy the zip file straight into USB without extracting it.

Yes, if you get the update package zip from Futeko's site. Once you extract it, just grab the update.zip file only to put on a USB stick.