Update. I finally fixed my Xbox... It was stuck in a never ending E200, E203 loop. Everytime I rebooted it, reset it, etc I always recieved an error code of some sort. I had a feeling that the on board NAND was getting stuck in some kind of error state, so here is what I did. I booted the Xbox into troubleshoot mode using the bind, eject, and power button. I chose reset this xbox, and delete everything. As soon as the Xbox powered off I pulled the plug. I waited a minute, plugged it back in, and booted directly using to the USB drive by holding the bind and eject buttons while hitting the power button. The Xbox installed the OS from the flash drive, applied the update, rebooted to the "preparing console" screen. At this point it would usually stop and display an e200 error code, but this time it completed and booted into the initial setup. I setup up my wireless network, time zone, etc signed into my live account and viola! Everything working perfectly now. So if anyone is having problems getting the USB update to successfully install try that method. Boot into recovery menu, choose reset this xbox, delete everything. When console powers off pull the plug, let it sit for a minute, abd then boot directly from USB and install the osu1. Hope this helps someone!