But still its a bit small.
The thing I'd really like to do is have a 60-100 GB HD, and the be able to transfer all of my music from an external HD to the 360, and then move the HD back to my computer. Same thing with videos (also support more than the fucking WMV clips, its so fucking useless).
You can plug in an external HD but you can't save games or Demos to it (unless there has been a change recently). You can only save games and Demos to the built in HD or a memory card.