I recently purchased and received Xenon 2 from AtariAge via Ebay. With the CD unit in place, I can't always get the game to load - all I get is a black screen after the Jaguar logo is displayed. I would say I'm successful getting the game to load about 40% of the time. Game works fine after it loads.
I have been in contact with Al and he is aware of the issue. He did ask me to try the game without the CD unit attached. I also plan on giving the cartridge slot for the CD attachment a good cleaning.
Searching the forums, it looks like this issue has come up with other games - Towers 2, Flip Out and I-War to name a few.
Has anyone else had this issue with Xenon 2?