Can xbox 360 arcades play classic xbox games?

Loan

New member
I don't have xbox live so i updated my console via USB device. It worked, rebooted , stuff. I have a harddrive too (60gb but there 45 left). I put in MOH frontlines and played it. But a window popped up saying i had to update my 360 or soemthing. (visit xbox.com....version 1.0) i thought i updated my 360 already? I already have a hard drive. Is there something wrong?
 
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