Basically you are deleting the operating system of your phone and reinstalling the newer one with video capturing built into it. So make sure, you have the backup of all your phone data because it will be erased. You can use Motorola Tools to make a backup of contract book, pictures, music files etc. You might use the "flash backup" software (included in the package) to make your own system backup, any can restore it at anytime.

The first thing you will need is the USB cable. This is the same cable you use for most of the Sony digital cameras so it might be laying around your home. Most likely it came with your phone. Or you can purchase one from eBay.

STEP 1. Prepare your software’s and connect your phone to your computer:

* Download The "Moto_V3" & extract the file and it will contain 5 folders:

* Connect your V3 to the computer with the cable and turn it on.
You might see "Found New Hardware" wizard. DON'T let Windows search for the driver, point it to "P2K Drivers" folder and install the drive on your computer. You might get the message twice and do the same thing.

* Install Motorola RSD Lite by running the setup file "RSD_LITE_2_4.msi" in "RSD_Lite_2.4" folder.

* After installation, open RSD Lite program by double click on the RSD Lite 2.4 icon on your desktop (The phone is still connecting to the PC)

* You will see "Found New Hardware" wizard again. DON'T let Windows search for the driver, point it to "P2K Drivers" folder and install the drive on your computer. You might get the message twice and do the same thing. After completing the drive installation, you've done the first step.

STEP 2. Install firmware onto your phone:

The time it takes to flash with Monster pack is about 10 minutes, and for Flash file and Language pack, it will take about 1 minute for each process.
Open RSD Lite program on your pc (The phone already connected to the PC)

Make sure that your phone is properly connected. Look in the Model column in the bottom of the window. You should see "Motorola Phone [V3]" and Status column will show your phone "Connected...".
Click the little button with the three dots, "..." button.

Browse to the flash file "R374_G_0E.42.10R_PDS005_LP0039.shx" in the "R374_G_0E4210R_Monster" folder.

Click on "OK" button, and the click on "Start" button, RSD will go through a process which takes between 3-10 minutes and then will display a message saying you have a successful flash!

Once RSD complete the flashing, click on the "Close" button.

At this point, it's safe to close the program and disconnect your phone. You will find your phone turned off. Restart your phone. Now you have a new firmware and/or language pack installed on your phone.

Thats it done.

Note:
The phone's keypad might sometimes stop working after updating the firmware. To restore the keypad to normal use the RSD Lite 2.4 software as before but browse to "KEYPAD_FIX_FLEX.hs" in "KEYPAD_FIX_FLEX" folder to restore the phone function. Make sure your battery has plenty of charge in it or is plugged into a power source.
***Only do this step if you find a problem with your keypad.