Was this chip used?? Already had a bios on it??? All ready had a backed up eeprom on it??. If so you may have flashed the incorrect eeprom (possibly wrong version box) to your box from the smartxx backup bank.
The eeprom you flashed now appears to be set to the wrong video standard for your tv (like it is set for PAL signal but you have an NTSC tv)
You can change the video mode (pal/ntsc) in the smartxx os if you can see it. Alternatively you can flash "flashbios 3.0.3 unauthorized" to a free bios bank and boot from that...this will allow you to reflash your eeprom from an embedded one in the bios, you must pick the version specific to your box from the menu. Then you may reboot with the appropriate bios for your xbox version.
By just putting avalaunch on your box, i cant see that it buggered your eeprom without any action from you, but none the less...try the above...it should fix your problem.
The chip was new sealed in the plastic with no bios on it.
I agree with the video issue, but for some reason the smartxx OS seems to be stuck in the japan game region. It wont allow american to be saved. It just keeps reverting back after the save.