I plugged it in and with the push of the button it came on, with the flubber screen or whatever it is and booted up to a screen that said "XBOX LIVE UPDATE, Please do not turn off the power until update is finished." Great I thought I'll just plug it up to the network and let it do its thing, WOW this will be an easy fix. NOPE, it came up with a screen saying "XBOX LIVE cannot connect at this time Please try again later", so I click OK to go on, after all I don't need to update XBOX live I'm not going to be on it anyways.
I clicked OK and the screen went back to the XBOX LIVE UPDATER screen again, then it went to the cannot connect screen with the OK button. I click it and it just looped around again and again. Well I thought this is grim, So I called Micro... well you know who and they take four techs and 30 minutes to come up with the answer, throw it away and buy a XBOX 360!!! WHAT!!
I guess you could hotswap it or more than likely it can still boot into an exploitable game to install a softmod.
You can also chip it or read the EEPROM
to get the HDD key and lock a new hard drive with retail or softmodded dash files in place.
Someone in the UK sells homemade EEPROM readers on eBay.