Right, I feel your frustration and I know how hard it is to see a broken Xbox, I had the exact same problems, so let me tell you what I did and how it solved my issues..
At first I had the following symptoms
1. Solid red led on the Xenium chip
2. Xbox would boot Eject button flash green for 2 seconds and reboot, then flash green for two seconds then reboot and go into a frag
I am luck enough to have a friend that has worked in the electronic field for AGES (20 years) he dug up his pretty impressive workshop and got to work, the findings ---
1. The D0 track was lifted, even he said to me that this is really difficult to spot and its a tricky bugger because of where its located (the top D0) that is. Also lifted tracks are really difficult to diagnose, he then fixed the lifted track.
The result of this ---
The xbox would not boot flash GREEN AMBER then reboot then flash GREEN AMBER then frag.
One step closer, he then spent a good hour looking around the LPC and the D0 points for solder splash, BUT eventually when he did a full search on the ENTIRE board he found the SMALLLLLLEST solder splash on the other side of the board. He showed me the splash and if it wasnt for his REALLLY strong magnify glass I would have never seen it.
Booted the Xbox and BANG it was working.
NOTE: (This is from the guys over at the ozxodus IRC channel)
If you get a solid red light on your chip You have power
If you get a solid blue light on your chip its found the XOS (the embedded bios)
The order --- Boot the xbox Chip should go RED then BLUE
I guess that after I had checked the board 5 times myself and I REALLY did check it, there was still some problems some pros could only see.
I was lucky enough to have a friend that was a pro, but if you take it to any electronic shop they should be able to pick up the problem.
When I asked my friend how the solder splashes got onto the other side of the board, he told me ALWAYS look for (and try to avoid doing this yourself)
1.Having your soldering iron tip to wet (i.e. with a blob on the end of the iron)
2.When removing a chip with a solder vacuum sucker you need to concentrate on the single point and keep the vacuum as close to the area as possible otherwise this is what happens.
I know that this is not what you want to hear but I know how fustrated you are and how you hoping for just that little easy thing that someone might say oh just flick this switch or turn this knob but this error is usually a hardware failure.
I spent 1.5 months on this problem and finally its been put to bed.
Good luck man and if you need anymore help let us know.
Carlos