Yeah the error 16 sounds like you have a new hd that doesn't have all the files on it. Thats easily fixed with something like slayers after you get the chip to boot into cromwell. Even with a blank hard drive, the X3 should boot into cromwell.
If your external switch is not working, you cannot enable the X3 without removing the external switch. So unpluch the ext switch, and just for sh*ts & giggles, go ahead and unplug the power adapter. You should boot into cromwell. If you get that far, you can start to diagnose why your switch isn't lighting up, but I would be willing to bet that you're not getting both lights on your X3 to light up (the 3.3v and the 5v). You have to get both lights on before you do anything else with it.
After you remove the ext switch and the power adapter and both the 3.3 and the 5v lights on the chip are working, if the chip does not boot into cromwell, you have a bad d0 connection. If the chip frags, you have some bad lpc joints.