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Severance said:

i found this on youtube, i don't know how its related to the HDD but the comments make it sound like it actually works

http://www.youtube.com/watch?v=QBQyLnmncN4&feature=related

from the description

"

I hope that u can see it good, but let me explain it.

1. Turn on your xbox
2. Go to the TV cable put it on HDTV
3. Then put it back to TV
4. Connect your controller

And it works :)"

I'm using HDMI so that wont apply.

It works without the HDD. 

I'm screwed. I'm gonna open the HDD tommorrow and check it out.