Error 16 is dashboard related, meaning that some file in the dashboard is bad. Probably clock.xip or similar.
Anyway SlaYers Autoinstaller will fix that when doing a reinstall.
But to help with the mest urgent problem, to flash the chip take a look here:
http://www.teamxecuter.com/flashbios...e16760b74694c5
That works for Xecuter 2.6 and up...
Unfortunately I can not give you direct support on how to find bios's and similar but a good start would be to google on "xbins" and then make a search in
www.xbox-scene.com forum... Or you could download a program called Qwix (or Craxtion, does not really matter) and unpack SlaYers disc...
To make sure nothing bad happens: Make sure you use a 1.6 supporting bios. A good choice would be EvoX M8Plus as it supports both the 1.6 and the 1.6b...
Good luck...