yep, if you have a newer xbox, you will get that funky screen. just let it be, the exploit is still working. And also, dont worry, yes it does take a long time to finish, you will know its done by the led around the eject button.
Softmodding is easer then ever, expecially with the newest breed of installers out there. just put the gamesave on the xbox, load the game, run the gamesave, and then follow the instructions that the softmod gives you.