T60 unresponsive security chip

Hello all,
I've found myself in a bit of a predicament that I'm hoping somebody else has experienced or can otherwise help me with and I would greatly appreciate any help or advice offered. Yesterday afternoon I did some routine windows updates (XP) and upon rebooting my computer just hangs at "checking the status of the embedded security chip". I have yet to find any way to get it to continue beyond this point. I have tried disabling all of the various passwords and options in BIOS as well as clearing the security chip and disabling it. At this point I have a predesktop password that the system will accept and it will allow me to enter the thinkvantage recovery area though sporadically it asks me for a password to get in and I have to remove the battery and hold the power button before replacing the battery and booting in order to get it to reset. The only thing I can think of is that the security chip has just gone completely haywire and I can't quite figure out where to go from here. Thankfully, all of my important documents and files are backed up separately so there is no concern there. That being said anybody have any ideas? I'm at my wits end so any advice is welcome.
I think I've described everything I can remember but feel free to ask questions and we'll see if there is anything I left out.
System:
T60 with Windows XP
(ask for further information that may be helpful)

Hi SpaceNerd12,
Check the solution here:- http://forum.thinkpads.com/viewtopic.php?p=171471#p171471
Hope it helps.
Maliha (I don't work for lenovo)
ThinkPads:- T400[Win 7], T60[Win 7], IBM 240[Win XP]
IdeaPad: U350
Apple:- Macbook Air [Snow Leopard]
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    Say thanks! with a kudo.
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    Hello ruudk,
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    Thank You
    Clicking the White Kudos star on the left is a way to say Thanks!
    Clicking the 'Accept as Solution' button is a way to let others know which steps helped solve the problem!

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