as crazy as it sounds- with xbox on- open tray and remove any disc-with tray still open, disconnect power cord-then close tray halfway-then gently plug power cord back in-turn on xbox.-tray will close and update should resume. got this from xbox support.
i couldn't do anything, i couldn't use my controller to back out or anything. but it did work!!!
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Have no idea what the status code means, but here is some information on update problems
When the xbox tells you an update is needed, but the update will not complete properly.
There are four reasons this can happen.
1. There are some corrupted files on your harddrive or your harddrive does not have enough space left.
2. There are some previous downloads stuck in your download queue.
3. There are some settings in your router that are blocking the download.
4. Your account is not in good standing.
First try to fix number 1:
Look at the contents of your harddrive and delete any files marked as corrupt. Then whether you find any or not, run the hard drive maintenance routine.
Harddrive cache clearing. If there is not enough space, delete some demos or other files you no longer need.
try clearing the Xbox 360 Hard Drive cache.
With the Xbox 360 Hard Drive attached to the console, follow these steps:
a. Locate the System section of the Xbox 360 Dashboard.
b. Select Memory, select Hard Drive, and then press Y to view the device options screen.
c. Select the Clear Cache option
Additional cache clearing
It is possible, that the console has a corrupt update download cache.
You can clear any failed updates by turning off your console, pressing and holding the small synch button next to the Memory Unit slots, and then turning on the console while still keeping the synch button pressed.
This will clear the update cache, and force the Xbox to redownload any failed update again.
If that does not fix the issue. You will need to look at your router. If you have a separate router and separate modem, then try connecting your xbox directly to your modem; just to get the updates. Once you have the updates, you can connect it
back to your router. You may want to investigate the proper settings for your router to work fully on Xbox Live.
Fix number 4:
If connecting to the modem still does not fix the issue, check your account status for expired credit cards or other issues.
If all else fails:
You can also check the instructions at this site for other ways to install the update