Ok, try this:
Remove the HDD from the console. Get a 2GB+ USB stick and format it to FAT32. Insert stick into console and goto memory settings, select the memmory stick and customize the USB storage so the console uses 1GB or more. Insert the stick into the PC and copy the $systemupdate folder to the root of the drive. Within the $systemupdate folder make sure you have all the files:
CODE
AvatarEditor.xex
BiometricSetup.xex
Dash.AttractionScreen.xex
dash.ExtraAVCodecs.xex
Dash.FieldCalibration.lex
dash.firstuse.xex
Dash.MP.Offline.lex
dash.natalpregame.xex
dash.NuiFirstUse.xex
dash.nuihub.xex
Dash.NuiTroubleshooter.lex
dashnui.xex
FFFE07DF00000001
FFFE07DF00000002
FFFE07DF00000006
FFFE07DF00000008
Guide.AvatarMiniCreator.xex
Guide.NuiTroubleshooter.xex
livepack.xex
mediasite.xzp
natalsu.xex
nuihud.xex
su20076000_00000000
system.manifest
Xam.Community.xex
Xam.LiveMessenger.xex
Xam.WordRegister.xex
XimeDic.xex
XimeDicCh.xex
ximedicex.xex
Xna_TitleLauncher.xex
Those files should be directly in the $systemupdate folder, and not in any sub-directories.
Then plug the stick into the console and restart the console. It should ask to perform the update when it powers on. Then see if Kinect works.
OK I think im getting somewhere now it says update required. to proceed security and program updates are required blah blah blah. etc etc do you want to accept the update.
So I did the update, checked the dashboard version and it still was the 12611 so i powered it off removed the flash drive, put in the hard drive put in the kinect then powered it on and