I have successfully overrode the failsafe. I'd post a picture, but I already sealed it up and everything. Here's how to do it:
1. Open the casing (the screws are unorthodox; you can't take them out unless you have the right screwdriver). One side of the casing has nothing holding it together: peel the sticker off and pry it open. With a chisel and hammer, whack next to each screw in order to break the case.
2. Unsolder the black wire. The wire that needs to be unsoldered is the only wire coming from the yellow plastic mechanism. This mechanism is the failsafe; there are "tap" buttons within it that disconnect power when the reset button is not depressed. Looking at the adapter with the power prongs facing toward you, and at the top of the unit, the black wire is soldered onto the circuit board in the lower left.
3. Isolate the black wire somehow, so that it does not accidentally contact other parts of the board. (I wrapped it in electrical tape and stuffed it in the groove in the black plastic holder for the prongs)
4. Test! Plug the unit in, and with a multimeter make sure it is delivering 120 volts, 2.5 amps (this is AC, so if you aren't getting anything, make sure your settings on the multimeter are right). If you don't have or don't know how to use a multimeter, skip this step.
5. Plug it into the xbox, and see if it powers on. If it does, congratulations! You have successfully overrode the failed failsafe. If it does not, you have some other problems and I can't help you here.
6. Unplug everything, seal the unit back up, wrap some duct tape around it so it stays together. I taped down the reset buttons as well, since they no longer have a purpose.
7. ???
8. Profit!
Hope that helped
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