Question for UDE users with stanard pbl. I read somwhere that people were having problems with more than 2 controllers. Has anybody confirmed this? If so is there a work around?

For me it only will get stuck at the starting USB line if I have the DVD playback kit hooked into the Xbox. And even then all I have to do is take it out then put it back in after it gets passed that one line. So it isn't that big of a deal.

Yeah that has nothing to do with UDE at all, it's a problem with PBL and the DVD dongle...
If you are looking for a solution check out Tomilius' thread " Pbl Should Be Fixed" he has a decent solution for the USB problem and is even working on S-VIDEO support with the latest version of PBL..