Hey all.. After many an enjoyable years of playing on my modbox, xbox failure finally occured, and I need help

Died when I was playing a movie, err technically after the movie.. Was idle a bit, and xbmc went to the screensaver. Next thing I know, it froze up making a loud noise, and some garbled / pixely blocks on the screen. Shut it off, restarted and it does the on/off cycle 3x and then I get flashing red and orange.
Tried disabling the mod, does same thing.
Tried removing the mod, does same thing. (thus my thought that it was the xbox).
Put modchip in another extra xbox along with hdd (a 250GB, unfortunately locked hdd).
xbox flashes red and green colors (with stock hdd in it) when modchip is enabled.
removed 250GB drive and reinserted stock HDD thinking, "oh yea - this drive is locked".. (side note - Does the chip override the locked status? I know the chip lets me boot unlocked drives, but will it boot a locked drive not locked to the mobo in use?)
Despite the good connection (IE green led comes on when chip is disabled), the "new" modbox refuses to boot unless the chip is disabled. Tried both memory banks (unsure that the 2nd bank has anything on it, seem to remember years ago "trying" something that wiped/killed it).
Used the Mech load and was able with the stock drive, to get the "new modbox"'s keys (and copied them to my pc of course via ftp), but then I realized that's not going to work because the 250GB drive will still be locked and unable to be unlocked in windows.
So this brings me back to... ACK!!!!! What to do..
Only possible courses of action I can think of at this time:
1. Try and locate (IE buy or make???) the programmnig plug-in to PC adapter and try to flash the modchip, hopefully fixing it (if it will not let me use my locked 250GB drive, there is no point).
2. Fix my original modbox (flashing red and orange).
Highly welcome to ANY other ideas, comments, suggestions.
Thanks in advance,
eR