With the release of the New Xbox Experience a little over a month away, those gamers who chose the hard drive-less skew of the console need some storage for the 128Mb update. Microsoft have launched a site for those people to get hold of a cheap 20GB HDD.
“In order to connect to Xbox LIVE and enjoy everything the new Xbox Experience has to offer, you will need an Xbox 360 Hard Drive. While you can connect to Xbox LIVE using an Xbox 360 Memory Unit with 128MB of available space, you will not be able to enjoy all the great features like Xbox LIVE Primetime and video downloads.”
Not exactly sure when this started, but the Arcade version now ships with a 256Mb Memory Unit, so even though you should be able to get the dashboard update, you will miss out on some functionality.
Xbox 360 hard drives have typically been rediculously expensive, the 120GB version priced at A$199, while the 20GB version is an insane A$169.95. Keep in mind you can pick up a normal 750GB SATA II HDD for A$99.
Providing your serial number and console ID are correct, you should be able to get a heavily reduced price on the 20GB version.
More @ xboxstorageupgrade.com