Just bought one off craigslist for 25$, the thing is the guy hasn't used in years and he just said you can get the software and tuts online, I thought that would be easy, but I was wrong. I found the flashing software here thankfully. Now I don't know what to do. I connected the USB to my PC and the xbit chip. It recognizes it but not the flashing software. I also wanted to what switches do I pull on the xbit chip to turn it on? Thanks

There may be something that will help here:
http://www.xbox-modchips.com/xbit.htm
Scroll down to where it says Files/Manuals/Downloads, there is a dipswitch guide listed there and also the flashing software.