The shader exploit is executed through the booting of a modified KingKong disc via a firmware modded drive.
This patch works like the crwl360-loader did, but without a serial cable and still requires a 4532 or 4548 kernel. If you have a newer kernel, you are out of luck. The patch includes the fixed sector reader code.
Note: Bit more details about what you'll need. As this uses the Hypervisor Vulnerability you'll need Xbox360 kernel 4532 or 4548 (downgrade is not possible atm as Microsoft blew-up an eFuse in CPU to prevent kernel downgrades, if you got a lower kernel version you'll need to find the CD/DVD burnable HD-DVD addon software update called HD_DVD_10-2006.zip (md5 cd4db8e2c94266ab73513c361dd5b8f6) that will upgrade your console to 4532).
You will also need the King Kong Xbox360 game, make an iso of it, apply the new shader hack that include cdreader and burn it ... and to run this modified gamedisc on your 360 will will need to flash your Xbox360 DVD-ROM drive with a modified firmware of course. And you'll also need to burn the 'xenon modified' gentoo minimal 2006.1 LiveCD that includes the XeLL Loader.
Then just boot your modified King Kong, press start on the main menu and when the drive opens, insert the gentoo xenon LiveCD.