According to Microsoft's Major Nelson,
the latest Xbox 360 system update is
in en route and gamers should be able to upgrade shortly. As
reported, this update provides support for USB storage devices.
The new update will allow Xbox 360
owners to use both USB HDDs and flash drives (they must be at least
1GB in size) to expand the storage of their systems. However, using a
USB HDD will most likely be a waste considering that no matter how
large the drive is, only a 16.5GB partition can be made. Total space
available will be 16GB due to the fact that 512MB of storage space
will be dedicated to the system partition.
Major Nelson also adds these words of
You can have 2 devices
connected to the console at a time, enabling up to 32GB of
The system won’t just
configure the device once it is connected to the console. You’ll
need to head to the memory area in system settings, select your USB
Device, and choose from Configure Now (Format and Configure the Full
Device), or Customize (you can choose how much memory you want
configured for Xbox360 from the free space on the device.)
For those of you that simply have money
to burn, Microsoft and Sandisk have teamed up to deliver "official"
USB flash drives for the Xbox 360. However, the 8GB drive will set
you back a whopping
$40 and the 16GB drive is going for $70 -- you can get an el
cheapo 8GB or 16GB flash drive for as little as $15
For more information on the USB update,
you can read the FAQ here.