I renamend the 5960 xboxdash.xbe and placed it in xodash as xonlinedash.xbe.
It simply wants an XBE it can boot, it doesn't care what. This also works as bugfix for the hangs, the dash is simply reloaded is any functions from the xonlinedash.xbe are adressed.
But as kingroch posted, it might be better to use 4920's xboxdash.xbe for this, creating a DDAE that boots a hacked/fuckms'ed live console.
I know about netwqork settings, it's the least relevant issue IMHO, but worth mentioning.