Use you USB storage device on your X360
In a leaked Microsoft document it’s said that sometime in the coming months their will be an update that makes it possible to use USB-devices for memory storage on Xbox 360.
Once the update occurs, Xbox 360 owners will be able to download Xbox Live Arcade games, Xbox Live Indie games, Games on Demand, DLC and Title Updates to the storage device. [Y]ou can also store disc-based games to the USB device; however, it will require the disc to be in the tray for authentication, identical to the current functionality.
This can be a really nice update for all of us with the original 20GB hard-drive. We can’t grantee that this is true, but we surley hope so.
