I have read a few posts in here were people thought the matrix chip does not work in a 1.1 system... I wanted to say that it worked for me and it only took about 2 mins to get the chip in the right spot!
the only strange thing is ( and i want to post this cause it took me a bit to look up this fact ) that the light on the matrix would flash green ONCE when i turned on the xbox and then flash red for the rest of the time.. this really had me going because i thought the chip was NOT where it should be on the board... I knew something was strange cause it did flash green once so i took some time to find the info i needed and read that this is what happens when you use the matrix on a 1.1 xbox.
i really hope that this helps people that get the strange light issue cause I know it could really mess with you if you didn't know the facts..
now if only i would have bought that 120gig drive........... :/