Ok, I'm going to post a quick little guide on how I got this to work..
Things you need
1. XBR3 for your mobo type (mine was zephyr CB4580 so I used falcon)
2. NandPro 2.0e
3. Degraded 1.1b
4. any of the SMC patching programs
5. XBR to Freeboot program (very useful for this SMC purpose) - found in the "usual places"
6. Freeboot .32 for your mobo type
Here's what you need to do next
1. Extract your original NAND from your mobo using whatever program you want, I use nandpro
2. Use degraded to check for bad blocks; if there are none, proceed, if there are bad blocks, remap them
3. Extract your SMC and CONFIG from your ORIG.BIN NAND and inject them into the XBR3 NAND
4. Once you have built your XBR3, you then again extract the SMC, except this time from the XBR3 NAND; I used the "extract smc from any image" program that came with the UPDATE MY SMC! program
5. Patch the SMC you extract from XBR3 with whatever patch you want and rewire your JTAG config based on what patches you apply; UPDATE MY SMC! will automatically inject the SMC back into your XBR3 for you
6. Once you've changed the wiring, flash XBR3 to your system to make sure the patch works with the wiring on XBR3; i've never had XBR3 give me a problem with these SMC patches
7. If it works, great, we're almost done.
8. Open XBR to Freeboot; open your SMC patched XBR3 NAND
9. Use the program to extract your KV files, SMC files, and CONFIG files; this has a very easy user interface and a good README that comes along with it
10. Follow all the instructions and this program will compile a 9199 Freeboot image using the patched SMC you extracted from the XBR3 NAND
11. Once the image is compiled, flash it to your 360's NAND and voila!!
I had one hell of a time trying to just patch a freeboot image. This workaround takes a little longer, but works 100%.