Ok aftert doing some messing around I figured out what was wrong (I think). The Xbox was FRAGing and the chip was not booting. I took out the original HDD and put in a 120GB HDD that has not been formatted and I also put in the Slayers Auto installer disc. I turned off the Xbox and forced it to boot straight to the CD. The CD came up and I formatted the upgraded HDD. Once that was done, I now noticed that the Xbox tries to boot 1 time and then on the 2nd boot the chip kicked in and the HDD booted. I then put in the orig HDD and I guess the owner before me must have formatted it with another set of apps. I formatted that orig HDD with the orig M$ software and now it works fine. Everytime the Xbox boots now, either by the Power button or the Eject button the Xbox boots once and then on the 2nd boot it goes to the HDD apps. Not sure why the orig HDD was causing issues but somehow it worked.
Thanks for the info Chancer...