I have read the guides and know this is common for rev 1.4's. The lights, tray opening indicate it's installed correctly. I have also read and have an idea, but want to be sure what's my next step? I'm scared I'll fry my xbox.
Your at the boot screen for flashing the bios? If so go ahead and insert the bios disk you made. Make sure the jumpers are set for flashing the chip.