This is the ME firmware found at the latest Dell A29 BIOS for your M4400 system:



That "me in recovery state" problem you are facing is BIOS (and not ME) related. Also, the "ME firmware updated fail" error is BIOS/Dell related. My guess is that it fails to update the ME firmware because it's already up to date or so. You need to contact Dell and let them know of both your encountered errors and steps taken to solve the issue.

You might also be able to fix it if your flash descriptor is unlocked and we find another A29 dump out there. Download the ME4 System Tools from the ME thread first. Run Flash Programming Tool with the command fptw -d SPI.bin. Does it complete successfully? If yes, attach the resulting file here compressed. If you see a cpu access error, Error 26 or similar then your flash descriptor is locked and you cannot recover the ME region. What you could still do is reflash the BIOS region with one from another M4400 user. But I suggest you try Dell support first.