yes, the chip is still good, hence the flashing red light and the cromwell boot screen (blue with computer info). the cromwell bios will only boot linux, that is why you can't load your XBE boot discs with it.
as chancer said, get an iso copy of eurasia, burn it, and learn how to use it to flash your bios. do some research on your required bios image, so you don't flash some bullsht that won't work.
in the future, take care to not flash over your flash utility, and once you have it working, don't mess with your bios configuration, as this is most likely were you went wrong if you had it working before this happened. another possibility is that you used a v1.6 bios which will work for a while on a 1.0, and then eventually FRAG or give intermitten failure (or so i've been told, i've never actually made that mistake).
the "christmas lights", usually refered to as a FRAG (flashing red and green), is caused by a bios error or a damaged motherboard. since you can boot cromwell, you most likely have a working motherboard.