The version 1.1 Xbox is pretty tricky. A lot of Matrix distributors are no longer selling the Matrix chip due to the number of problems people have been having with a 1.1 xbox. I myself have had problems, but after doing a bit of research, I got it to work.
First, you need to remove the lacquer coating from the g-spot on your motherboard. This coating makes it difficult for your chip to create a solid connection with your motherboard. I simply dipped a mechanical pencil in some alcohol(using alocohol was recommended by numerous sites, just be sure to have your xbox unplugged) and scraped the lacquer coating away until the g-spot was nice and shiny. Once that's done, try it now. Its definitely a good idea to use a coloured bios, as it indicates when you are using a hacked vs. original bios. You have to also realize that the lights on the matrix are not much of help. I didn't even bother putting the chip in mode 1. What I did was put it in mode 3, powered it on and fiddled with the chip until I got a solid green light. I also noticed that there was a regular green light and a very bright green light when trying to line-up the chip properly. The very bright green light is what you are NOT looking for. Once you have a solid green light, power off the xbox and power back on. Things should be good by then. If after awhile, you still can't get it to work, you can do some soldering, which I can explain if you are still having problems. Let me know the outcome. I was once like you having problems with the chip, but I am now a proud owner of a hacked box.
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