Xbox 360 and Original Xbox Compatibility Problem
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Solved by Ertman,
I did get it figured out while I was testing out other options.
It turns out that it was user error. Although proper documentation might be helpful. You need to make sure you are not only online but are also signed with an Xbox live account. It's the Live account step I was missing as its required to download the emulation update. It's something you'd think they would include with the dashboard update, or at least in the error message.
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