So the software is telling you you have 455Mb of games, you need to lower it to less than 300. You need to delete as many N64 roms as possible totaling 155Mb.
Maths - not even once!
I think its working now..at first when I just deleted the games from the folder it was not working still said I had too many games..but when I went to the home screen and actually unchecked the games now it says Uploading kernel..yeah its doing it slowly but its doing it at least