SOLUTION!!!
For those of you out there that are having this same problem- not being able to access your x3config live dash after you have loaded the x3 bios, this is how you fix it.
I tried time and time again to burn the erase.xbe to disc and have it load that way. With all diff. sizes of dummy files. Each time it would act like it was gonna load and it just locked up. I also tried to execute it from flashfxp with the slayers disc loaded. locked up.
So, i got the evox M8 bios1.6 and loaded it into bank one, I booted with that and and got my evox to work. Then from evox i opened boxplorer and ran the erase.xbe from there. Now just reflash Bank 1234 with the x3 bios and boot. Also, for some reason my xbox already had a password stored and thats why i had to go thru all this crap. My box was brand new in the box and the first time it was ever turned on was after the chip was installed. ANYWAY- it works fine now.