I have successfully modded a 1.6b XBOX with a 1.5 XBIT mod chip. I followed all the directions from DMS's web site to install it using the 1.6 adapter with a few exceptions.
1. The green and brown wires are reversed in the picture I used from DMS and the mod wouldn't boot. I swapped the brown and green wires to a final position in the LPC of Green - pin 2 and Brown - Pin 1. After this the mod worked successfully
2. The green LED on the XBIT was always on when the power cord was attached. This was a concern to me for a couple of reasons. I didn't want the XBIT to always be powered up and excessivly stress the chip and I didn't know what affect it would have on the XBOX itself. With the adapter installed, the chip draws its power from the 5v pin on the LPC port. This pin always has 5v apply to it even when the xbox is off. To solve this I used the included DVD power cable that is normally used for XBOX 1.5's and cut the connector from the red and black wires. Next I removed the orange wire that was connected to the LPC port and connected it to the red wire from the DVD cable. The red wire (5v) from the DVD cable is switched on only when the xbox is turned on. This allows the XBIT to only get power when the XBOX is power on. I soldered the wires and put a little heat shrink over the joint to protect it from shorting out. I cut the black wire off because it isn't needed. The chip is grounded using another pin on the LPC port. I tried using the cabled normaly and just connecting it directly to the chip with the orange wire disconnected but the mod wouldn't work correctly.
Here is a link to a picture of the install.
Picture