I couldn't beleive it. My theory is this.
The file system on the generic memory card is probably corupt in certain places due to poor quality parts or the memory itself is corrupt. Some xbox's are probably better at handling this than others (namely the 1 I was trying to flash). It is just the luck of the draw that I had this problem.
The good thing about it is that the guy was so grateful that I was able to flash the xbox, that he gave me the memory card.
Moral of the story here kids is to mot buy cheap memory. You obviously get what you pay for. Mortal, go to Walmart, but the xbox branded memory cartridge. Use a rasor blade to open the package on the back at a discreet place and give it a try. If it doesn't work, take the card back and get a refund. Just don't destroy the package.
Smashly, I used the embedded FTP server in the latest version of Evox to FTP the raincoat files to the memory cartridge also (the generic one) and it didn't work for this Xbox. I don't think it was the method (although a HD cable swapping method probably would have resulted in a flashed BIOS since I would be bypassing the memory module) that was causing the problem, just the bum cartridge.
Anyway, it is working and although it took forever, the process was quite painless.