I was listening to iLLNESS and another person talking in irc about the hex files and apparently, the frequency of the crystal and actual Pic (as long as it's in the 18F family) aren't important if you use a bootloader. When you flash your 360 usb spi, that prompt comes up with yes, no, cancel for the bootloaders settings. You hit cancel because the device already comes with the bootloader set up with the right configuration. The hex has it's own device settings, but they are ignored if you hit cancel. That's why iLLNESS's hex file is labeled 18Fxxxx. At least, that's what I understood from the conversation.
As for the " Unknown Device connected" message on your ps3, is install package and app/home still showing up? With Waninkoko's payload (psgroopic 1.6x), the device (in this case, the 360 usb spi jtag board) turns off after the payload is delivered and an error message (can't remember which) pops up on your ps3 over and over again until you unplug the board. Also, you did remember to move the jumper out of bootloader mode, right?