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The DVD drive might have bad / no firmware, data or power cables are muffed up, incorrect drive...
No. You're 10000% wrong Krazy. Jr, you have to JTAG read the flash NAND on the 360, do some magic, and in the end you'll be able to read the CPU keys and LB (I think?) keys so you can generate a new DVD key.Sounds like you never had a working key.