It could just be a corrupted dash XBE (or dashes because it sounds like it might be set up for dual boot). Assuming it is a softmod the orange LED is usually an indication that the softmod has loaded and that means you should be able to boot or at least cold boot a disc like HeXEn (burned to DVD-R) and update everything.
Thanks, HeXEn fixed it! I burned it to a CD-R, but it still worked.
Excellent news.
now that you have it working, you should solder the TSOP flash points and flash it. never have to worry about soft mod issues in the future.