first step is to verify ftp access to the dashboard so you know it boots.
are you booting with an AV cable inserted? it won't go to the dashboard unless you have something in the avip port.
also, WTF are you talking about hotswapping?
just get another DVD drive to use. don't mess around with HD's.
also try burning different formats (cdr, cdrw, dvd-r, dvd+r, dvdrw, different brands/speeds, etc). xbox dvd drives can be picky about media (depending on which drive you have).