oddly enough, this kinda seems like a DVD drive problem. swap the DVD drive into another xbox if you can. see if you get similar results. does it do this on the retail bios also? it sounds like it's trying to read a ghost disc.
if it's not the DVD drive, another thing you can try is to jump BT to the chip, not the eject board.
here is a pinout, jump BT to the X, and see what happens. 1's are pins, 0's are spaces.
CODE
101111
(BT) 1001X1 (D0)
you're not supposed to leave the BT open,
and i know chancer is gonna flame me for this,
but if all else fails,
just unhook the BT from everything and leave it open...just to see if there's a change in behaviour.
don't leave it like that though, or you'll have problems...maybe even an angry brit knocking down your front door...
i gotta say, this really sounds like it's coming from the DVD drive.
if you don't hit the button, it loads M$ dash, correct?
that's because it's finished trying to read the DVD medium, and has decided to boot from the HD.
the freeze at the splash screen is most likely your xbox...
- waiting for you to shut the DVD tray that's already shut
- waiting for the imaginary disc to load
- going slope-faced when it looks for a dash
- freaking out negotiating a data stream with the DVD drive (but not enough to error code).
also, i know this sounds stupid, but also verify that BT is hooked up to the correct pin on the eject board.