I think what Steve is politely trying to get at is...
UR doin it wrong!
I am not trying to be a jerk, I am actually just trying to help out. Since this isn't the first Xbox to get a solder-less chip installation, and the thousands of other Xbox's that have successfully done the same mod, it really means that something must be getting installed wrong.
So the DVD smashing the chip, and the solderless adapter lighting up when you puish on it, are 2 huge indicators that something isn't seated/installed correctly.
I know you have double checked your installation and it is all good. But I would suggest going back and checking again. Start with the solder-less adapter, pushing on it shouldn't make it light up if you can push something together, and then it lights up, that is an indication right there that the two items aren't making contact correctly. Maybe you should tear all the parts out and start from scratch, that is what I do when I run into these types of problems where I know I have done it right , but it still doesn't work. Usually redoing from scratch and forcing myself to follow the directions, even though I know I have assembled it a hundred times before, solves the problem.
Also, what is the "some kind of error" you get?