Here's the steps to get the console version working properly:
1) Follow the steps to get the files on the flash drive and write the mbr for grub4dos
1b) Download MHDD and copy the files from the downloaded zip file to /MHDD directory in the root of the flash drive.
2) If using Ndure 3.1, prepare it as you would normally and copy the files to the /hdm/ndure directory on the flash drive
2b) Download and copy
ndure2 (modified ndure 3.1 script just for xboxhdm2) to the /hdm/ndure directory on the flash drive.
3) Put the eeprom.bin file in the /eeprom directory from the xbox you want to build a hard drive for.
4) Eject the flash drive properly, insert it into the computer you're going to lock/unlock the hd with while the computer is off.
5) Connect a power molex connector from your computer to the xbox hard drive, do not connect the ide cable just yet.
6) Make sure that no other devices are on the IDE channels and make sure the xbox hd's jumper is set to master.
7) Start up the computer, go into the BIOS by pressing a specific key when the computer brand logo shows up.

Disable automatic mode for the primary ide channel, and change the boot order to boot to the flash drive.
9) Save and Exit the BIOS
10) When the computer boots to the lime green boot menu, press the down or up arrow key to cancel the countdown.
11) Connect the IDE cable to the xbox hard drive.
12) Select Slax ... and press Enter
13) Login to slax using username, "root" , and password, "toor"
14) Type xboxhd2 and press Enter.
15) Using the unlock or lock option, allow the system to determine the HDD Key to lock or unlock the hard drive. This key is based on more than these three things: eeprom.bin, Model number, and Serial number. So each hard drive will have a unique key depending on the eeprom file. Keep that in mind and watch what you write down. The HDD Key is a 20 byte key given in hex. Record this hex number.
16) Exit the unlock or lock option by typing "no".
17) Type poweroff and press Enter. If your computer doesn't shutdown completely, press the power button and it will initiate the shutdown sequence.
18) Unhook the IDE cable from the xbox hard drive (Leave the molex power connector connected) when it shuts off.
19) Power the computer back on, press up or down at the menu to cancel the countdown, connect the ide cable to the xbox hard drive.
20) Select FREEDOS and press Enter
21) Type cd MHDD, and then type MHDD and press Enter.
22) MHDD will load. This tool is extremely powerful. It bypasses the BIOS programming and communicates directly with the IDE channel. We are going to use it to lock or unlock the hard drive. Type PORT and press enter
23) Type the number of the xbox drive and press enter.
24) Using another computer google the extended ascii table and use it to convert the hex hd key you wrote down to dec or decimal numbers and write the individual decimal number down.
25) If you are unlocking the xbox hd, type UNLOCK and press enter.
25b) Type 0 and press enter
25c) Now this is the fun part. Grab the decimal numbers you wrote down and type them one by one by holding down the ALT key while you type the number on the Numeric pad. When you finish typing one number release the ALT key and a character will appear on the screen. One character represents a byte in hex, or 8 bits. Continue entering all the decimal numbers in this way. When you finish count the number of characters on the line and verify that there is 20 characters. Press Enter.
25d) If you entered the hex bytes in properly, it will say "Done." in green. Type DISPWD and press enter. Repeat step 25b-25c.
25e) It should say "Done" in green. This means the password is disabled until we choose to reenable it. Verify this is true by typing EID and press enter. Under security it should say high, OFF.
25f) Type Exit, and press enter. Turn off the computer. Unplug the ide cable from the xbox hard drive.
26) Turn on the computer, press up or down once you reach the lime green menu to cancel the countdown. Plug the ide cable into the xbox hard drive.
27) Select Slax ... and press Enter.
28) Type xboxhd2 and press Enter.
29) Type yes and press Enter.
30) Type 2 and press Enter to enter into xboxhdm
31) At this point, QEMU is loaded which mounts the flash drive as type msdos. A type of MSDOS is an issue because we will be copying files that have more than 8 characters in their filenames. We need to unmount the flash drive and remount it as type vfat so that the flash drive's files can be read with more than 8 characters. Assuming that /dev/hdc is your flash drive, type the commands below, pressing Enter after each line:
CODE
umount /dev/hdc1
umount /xboxhdm
mount -t vfat /dev/hdc1 /xbox
mount --bind /xbox/hdm /xboxhdm
If this completes successfully, we can see that the file names are now as they should be. This will prevent error 21 from showing up and freezing on the xbox logo at startup.
32) Type xboxhd and press Enter
33) Build the xbox drive by following the options on the screen. You should be familiar with xboxhdm; rtfm. Once you are finished press 8 and enter to Quit xboxhdm.
34) Type xbrowser and press enter to verify the file structure of the xbox hard drive or to launch the modified ndure script for ndure 3.1. You should know how to install ndure; rtfm.
35) Press F10 to Quit xbrowser (Midnight Commander)
36) Type poweroff to initiate the shutdown sequence. If it doesn't shutdown fully, press the power button on the computer to start the shutdown sequence for sure. Wait until the computer is off.
37) Unplug the ide cable to the xbox hdd.
38) Turn on the computer, at the lime green menu hit an up or down key to cancel the countdown. Plug the ide cable into the xbox hard drive.
39) Select FREEDOS and press enter.
40) Type cd MHDD and press enter
41) Type MHDD and press enter
42) In MHDD, type PORT and press enter.
43) Press the number corresponding to the xbox hard drive and press enter.
44) Type PWD, press enter.
45) Type 0, press enter.
46) CAREFULLY type the 20 character hdd code generated for that specific hard drive by using the method in step 25c. DOUBLE CHECK your number. Ensure that there's twenty characters on the line. Press enter to lock the hard drive.
47) Type EID to verify that it's locked.
48) Type EXIT to quit MHDD. Turn off the computer.
49) Moment of Truth... Unplug the xbox hard drive from your computer (molex connector and ide cable) and plug it back into the xbox. It should load up UnleashX perfectly without errors if you used Ndure 3.1. If you used M$ Dash files, it should load up the M$ Dash just fine.
50) DONE!