First make sure you have a crossover cable connected to your PC and xbox. Second, make sure to have X3 3029 v16plus.bin (your profile says you have v1.6 xbox?) in a folder on your PC. Third, on your PC, configure so that the PC ip is something like 192.168.0.X where X=1-254 except 99. Reboot your PC just to make sure. Fourth, make sure flash protection is off on the X3 chip.
On your xbox, set your X3 cp switches to on on off off off. Boot up your xbox to flashbios. Your xbox will try to find an assigned ip, It may get an assigned ip or it may not. You need to look at yout tv screen to see what ip was given, It may be the default of 192.168.0.99.
Now, on your PC, open up Microsoft IE and type in :
http://192.168.0.99 (or whatever ip was given to your xbox). You should see flashbios screen. From there use browse button to direct to your X3 3029 v16plus.bin file. Your TV screen should start showing your X3 is flashing. You are then done
BTW, you would find answers to your questions faster if you use the search function. Try it next time. It works