Later versions of XBtool come with a proper Debug.ini (minus the RC4) in the more configs folder. Files in this folder have all the proper offsets. Older xbflash/xbtool compatible configs, by the way, are not compatible with later versions of xbtool.
You should not remove Multi.ini. Just choose the proper config under BIOS Type. Multi.ini is for BIOSes which boot on both 1.0 and > 1.0 Xboxes. You should leave this file as is (with no RC4 key) as these bioses have an unencrypted kernel and boot loader.
To use XBtool with your BFM BIOS you need to put the Debug.ini in the Config folder and add the RC4 key like so:
RC4_key=0x00 0x00 0x00 0x00 0x00 0x00 0x00 0x00 0x00 0x00 0x00 0x00 0x00 0x00 0x00 0x00
Then start XBtool, choose debug for your BIOS type (ignore the make bfm option since your BIOS is already BFM), and open the 4977 bfm bios. If you have the proper config with the proper key in the format shown above it will open, assuming someone hasn't fiddled with the encryption.