I was going to say that it sounded like you were describing the "Pin Header" pins that are on top of the chip and not the pogo pins............
You last post says you think you have it working-
In answer to some of your questions:
The M7 Bios will look identical to the M$ bios - Either flash an X2 bios or color your M7 bios with Xboxtools utility (Found under downloads) to help you visually identify if your booting a differnt bios other than the M$ bios.
The LED referenced in the Tut refers to the Power LED's located around the eject button on the front of your Xbox, not the LED located on the Xbit external board.
It sounds like your Xbit had a rough trip in the mail - You may or may not have any recorse with regards to returning it since you have removed the write protect tab.
The Bent and then corrected pins should not have any affect on a pogo installation, however one has to wonder if the pins were bent badly, was there additional damage done..........
?
Good luck, and let us know if you get it working