What exactly did you do? There is nothing about updating with this method that would cause that to happen, if the games just wont read then your drive has probably died, if you get the "play dvd" text under the disc tab in FSD and it takes you to an error screen then your DVD key does not match the console and you will need to get your consoles keys http://www.xpgamesaves.com/topic/104451-how-to-use-xebuild-update-server-to-dump-nand-and-keys-super-fast/ and flash the drive to the proper dvd key
Excellent mate! Been waiting for this! This is by far the best and easiest update method - u r a star. A thousand thankyous.