Well I figured I'd finish this thread seeing as I managed to get the trouble fixed, I don't know if this would be an issue for other 500X units or not but for mine it was.
I formatted my usb Thumbdrive using the program linked from this site, Then I loaded up v3.0.4 to see if it would take, it didn't, same problem endless looping and rebooting, so I formatted the usb thumbdrive again and installed the bootloader patch 17L - the 500X took that perfectly, then I formatted the usb thumbdrive again and put V4BETA 5 on the unit and it took that and all went well, after that step I formatted the usb thumbdrive again and installed v3.0.5 on the unit and the 500X took that firmware and it worked like a charm, no more looping and rebooting, everything works,
I decided not to go to v3.0.4 because they are basically the same except the v3.0.5 firmware corrected the shoutcast radio issue, I believe installing the 17L bootloader patch took care of my issues but seeing as I'm not a programmer I don't really know, I do know that it worked and now I am at a firmware version I like:)
So even though this is an older unit I hope this helps someone out there if they have the same issues, but then again my unit might be a rare case because no one had any ideas on here. I received help in the past from this site so I'm glad to give some back:)
Good day