so i can understand your problem a little better:
1. whats your system specs? you got enough RAM to run the gui version?
2. you have definitely followed the install guide to the letter (populated the HDM folders with appropriate M$ files etc?)
3. eeprom.bin is in the root of the stick in the folder eeprom.
no ISO needed for 2.1 final (all done by populating the folders).
I suspect your stick is not 'built' properly and your files are either missing or not in the right place. have another go & feedback.
IIRC (although its been a while) fwz scripts automatically 'find' your HDD for you. see
this post which may help 'getting you started'.
I have sued the XBOXHDM 1.9 on my Pii 440bx board with NO problems...
I think the problem is with the Grub4Dos Installer. (Preparing the MBR of the USB-STICK)
If I prepare it and copy all the xboxhdm2.1 files to the root of the USB it does NOT boot.
IF I prepare the USB with BartPE and then copy over some of the files it boots....
I cannot get the GUI version running. THe Console lite version boots but than hangs at looking for the livecd.sXX (With the hard drives attached) (Without the drives attached it boots to the "SLAX" login page...)
Am i missing something here. Have about 3 hours invested in making the the USB bootable. I have a USB stick with winxp on it and it runs and boots fine.....