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Alright.. Finally got around it..
First off I tried the direct connection to the modem.. same stuff..
Finally I got frustrated tore open the box took out the hard drive and chucked it across the room.. and then after imagining myself doing that I put in the old drive and it booted to live fine.. so the problem was obviously with files on the drive..
I started piecing back the new drive from scratch (formatting through FTP) and kept track of which files I was adding all the while checking live to make sure it'd boot.. I narrowed it down to the E: partition.. Then TData and then most likely it would have to be the 55530019 folder followed by the u$ folder which contains plenty of live settings and other little tidbits that could cause conflicts when recovering a live account..
So thats that.. I'm just going to let the file sit out of the box for now.. I'm sure if they're necessary xbox live will just update the console and add working files...
Thanks for your suggestions guys.. I think the only real excitement is troubleshooting along with the only real headache.
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