TSOprano: Blue Xeniums can't be updated in a v1.6, I mean I've never gotten one to anyways. What I suggest you do is stick it in a pre 1.6 Xbox and update. If you know noone then mail it to me and I'll do it for you free of charge.
sniper666: It's quicksoldered in, that's fine. Simply look close on the chip, there will be a lil white sliding tab on the chip, flip that over and make update either via disk method or HD method. If the file is already on E:\ then be sure to remove ANY disk from the drive and then continue.