OK, I have it working now (The delay is a bit annoying, but it' seems a nescessity - bummer) A simple mistake was made as I'm not the only person who uses that PC for flashing stuff (long story won't bore u all)
But, Something that threw me off is that in the readme (and other places) it infers that the launch.xex and the .ini go on in the root of the content directory not the root of the partition, so it was lucky that I was looking at the patches.s looking for a non existent error and seen the actuall path or it would have confounded me for a lot longer.....
It would be cool if we could put other stuff in the .ini file ,like bootanim to xexmenu delay for example.
Good work ppl, I'm sure this will open-up lots of possibilities with scripts to automatically check usb for updates to XBR or Xexmenu, XM360 etc.. etc... That would truly be awesome AND make my life a lot easier...