For what it's worth, with the shadow c: completely hidde, you could compile nkpatcher to load the regular msdash, and play backups, right?
I have someone in mind that I would like to mod a box for but keep it "stock", ie boot to msdash as normal, and play backups only from discs. All it would take is krayzie's setup above, but compile nkpatcher to boot c:\xboxdash, correct?
Just a thought. Ftp could always be accomplished with a disc.