That's usually a dead HDD. You'll need mod chips (or just one if you just want them to be stock), new hard drives and a copy of MS Dash (Slayers Autoinstaller has one, or you can get one from a working Xbox). You'll need to install the chip and flash it, replace the HDD, boot to an Evox disk, FTP the MS Dash file into C:, then lock the hard drive (only if you want to remove the mod chip -- most hacked BIOSes can boot unlocked HDDs).
If you just want to do a quick replacement and then revert to stock, I suggest getting an XBIT chip for this. They're only $30 and they're solderless, so you can quickly and cheaply replace the hard drives and then sell the Xboxes as refurbished/repaired if desired.
EDIT: You can also run dashupdate.xbe from any LIVE-enabled game. Just boot to an Evox disk, swap the Evox disk with the game. From here, you can either copy dashupdate.xbe to a place where Evox will recognize it and add it to your launch menu, or FTP it over to your computer, rename it to default.xbe and burn it to disc using the same method you used to create the Evox boot disk. After that, you can jsut bot the Xbox with the disc in the tray and it should update the dashboard automatically.