the diode jtag method with falcons and zephyrs are a big pain in the ..... e79 is more common then the exception, on an old zephyr with hdmi i would get one e79 error every two boots (one successful boot into freeboot, the e79. reboot and successful boot into freeboot, then e79 upon another boot).
the aud_clamp method should fix that problem
if you only write xellous with the aud_clamp patched smc.bin into your nand, you have to have the aud_clamp wiring. if you have a transistor jtag and write a xellous with an aud_clamped smc.bin to your nand it won't boot into xellous.
so aud_clamp smc.bin needs aud_clamp wiring ==> aud_clamp patched xellous and aud_clamp patched freeboot
normal smc.bin needs transistor jtag ==> normal smc.bin patched xellous and norma patched freeboot
just rewire accordingly or use the correct smc.bin into your xellous (aud_clamp smc, normal smc or custom smc).
if you get xellous to boot (50 blocks, 2 mb) dump the nand via the network connection. compare etc. etc.
then generate a freeboot image and flash via xellous (put on usb stick, name it updflash.bin and reboot into xellous. update will start, takes around 20 seconds). if you have bad sectors, xellous will relocate them...
my suggestions;
go with the aud_clamp wiring (transistor method), it will resolve many e79 problems. don't forget to use the aud_clamp patched smc.bin files all the way (by injecting them into the freeboot image manually). there are prepatched xellous images with the aud_clamp smc.bin in it....