we've all, well, most of us, have been there. so dont worry too much.
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Steps that I would take (any corrections or advice is greatly appreciated):
1. turn on xbox and select "Launch Menu" then select "Retail Kernel -A" from the Xenium OS
(xbox not physically connected to router/internet; also no disc in dvd tray)
dont worry about it being connected to the router or internet. for one, as long as you have a live blocking bios, your pretty much safe to begin with. i leave mine connected all the time. so go ahead and plug her in. save the headache.
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2. once ms dash is onscreen, plug in physical connection between xbox and router/internet
again, it can already be plugged in.
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3. select xbox live tab to connect and set up new xbox live account with 12-month starter kit
(afterward, allow xbox live to update)
yep
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4. put retail game disc (i.e. halo 2) in dvd tray
(select gamertag and sign into xbox live, then play)
yep again.
good research. its nice to see people that are prepared and ready to go. couple other things i do to be safe is i have all my led's set to red if a mod bios is loaded. red as in STOP!!!. and i have to load retail from the xenium os, no quick boots and such. and when the retail bios is active, the led's are GREEN. its always nice to have those visual ques when your in the middle of playing and you have to stop and think, "which bios did i load?"
good luck and enjoy.