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[Mikebotz]

you can not use a backup up game with xblive.  The mod chip must be turned off when connecting to xblive or your box will be banned, so mod chip off = no backups.

What mod is the matrix in?
Are you using an eject patch bios?

you might want to try the f boot or e boot eject bios

also you should have the matrix in mode 3.  

If you pm me I can send you an E boot one that works with what it seems you want to do.

before anyone does anything they should always have an untouched back up of c and e drives if possible.