Ive got my v1.6 modded and working! Thank you to anu|b|iss whose email got me to work on the problem again and to everyone in #OzXodus of EfNet for helping! It turns out that with blue Xeniums, lframe must be grounded against the chassis and not to d0 on the Xenium itself. Woohoo!

*Update 1*
I went to "Recovery" on the main menu by accident, now I'm stuck with the LED flashing green. How fun. Looks like I need to desolder, reinstall in another xbox, reflash with XOS2, put it back in *sighs*. For another night.

*Update 2*
Ok, so waiting 5 minutes then pressing eject seems to have fixed that!