You'll be able to save most game data but you won't be able to much else. You won't be able to install games, download games off XBL, buy downloadable content, download music or movies, download free demos or pretty much use most of the features the Xbox 360 has.
Just get a hard drive. 60GB is pretty good. You can get even bigger though and you will guaranteed never have to worry about space.
Just get a hard drive. 60GB is pretty good. You can get even bigger though and you will guaranteed never have to worry about space.