I've actually seen this issue before, a friend of mine pointed it out to me. It seems to be related to how the mod is originally installed. (Example: using Splinter Cell instead of Mech Assault, etc.), the fix is to boot with my Rescue Disc, FTP into your XBOX, and TOTALLY wipe everything off your C and E drives (although you might want to back up your TDATA and UDATA directories first), and then re-transfer my VGA Softmod over to the C and E drives again.
Using my Rescue Disc is the safest way to install my VGA Softmod. (Although Splinter Cell/Mech Assault/AUF usually work fine too.)

NOTE: The 'shadowc.img' file actually contains the Microsoft Dashboard, which is why it isn't working at the moment.

1. softmod the box in general so i can use your rescue disk
2. use your rescue disk
3. recopy your vga mod back into the xbox
4. kick back with a slurpe and enjoy
ah so due to the fact that only about half of the file was copyed over the ms dashboard can't load and thus i get the freeze. I see i will try it again but i'm going to wait until i get the bigger hd that i want before continuing. thanks Frosty!