I am installing my first Smartxx chip very soon and i have looked around even on the official sites forums and manuals for this answer but to no avail.

Will the Xecuter 3's 3294 Bios work on the Smartxx v3?

Any help would be wonderful!

Nope, use the latest X2 bios. The X3 bios is for the X3 chip only. Remember to read the .NFO/readme file with the latest X2 bios.

dang, ok i thought i had heard somewhere it did but the X2 5035 bios is just fine too.

Yes there is an ALTERNATE version of the X3's BIOS that does work, but to be honest it's crap as you can't change anything without using a PC to repatch.

Further to that unlike the SmartXX where the OS kicks in prior to any BIOS code, the x3 does things the other way around, so all these X3 features you are expecting simply won't occur.

Overall you are far better of using the X2 bios as mnentioned above, especially as it's half the BIOS bank size.

I have the smartxx v2, which I love, running the latest live config x2 which is great and allows me to boot directly to xbmc or whatever I want.

I use the remote flasher to flash my BIOS, which I read X3 that does not have that ability.

But question:
you claim that the X3 must be patched, but isn't there a live config version of the X3 also?

Yes, but only on the X3 chip. What XOR was referring to was a patched X3 BIOS which would work on the SmartXX; and since it's not an X3 chip, you'd have to re-patch/re-code the BIOS on your computer everytime you wanted to change something

On an official X3 chip, everything can be changed from within a menu on the Xbox itself.