Have you flashed on a new BIOS yet? If so, what BIOS did you flash and what version is your Xbox? Sounds like you flashed a 1.0-1.5 compatible BIOS to a 1.6 Xbox. Or vice versa, although when I was working on a box that was the opposite it was causing a FRAG I believe.
If that's the case your best bet is probably to get an EvoX boot disc created (Slayers auto installer should count for this), FTP the correct BIOS to your Xbox's HDD and then trigger the dashboard to flash the chip. Check out this post for information regarding the process -
http://teamxecuter.com/forums/showthread.php?t=33217 Different FTP apps will have different means of sending a raw command, reference your app's documentation.
Props to Martin C for recently pointing this out. I didn't know about this procedure 48 hours ago.
-Whoopin'