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[running_wild]

[erexx]

Sounds like you learned a lot the hard way.
At least your PC trouble shooting lead you back onto the correct path eventually.

This is what I have for the Xenium and Xbox LED colors on three Xbox's:

(Blue could be Purple w/red)

Quick Start and Instant Boot: Off
Xenium LED with Power Button: Red, Blue, pause, fast blue, Red, Blue
Xenium LED with Eject Button: Same
Xbox Power Button: Green, Red, Orange, Green, with the Xenium OS loaded.
Xbox Eject Button Same

Quick Start and Instant Boot: On
Xenium LED with Power Button: Red, and then Solid Purple (With Red)
Xenium LED with Eject Button: Red, Blue, pause, fast blue, Red, Blue.
Xbox Power LED Button: Green Red, Orange, Green Flashing then Dashboard loads
Xbox Eject LED Button: Green, Red, Orange, Green, with the Xenium OS loaded.

While flashing the chip I could watch the LED on the chip Flash from Amber
and finally to Solid Green when the flash was completed.
Even though the Xenium OS "stalled" they rebooted with the new V1.1 Xenium OS.

I would say consider the flashing colors like bios tones on a PC.
Each tone or color representing the state the bios chip is in during initialization.