I've been using a 1TB exteral HDDhard disk drive as my memory unit. The system recognizes and allows me to use all 978GB not being used by system files. You can pick up one at Walmart for like $79 for a TBof it. Better than spending all
The console will treat USB flash devices the same, but keep in mind that money on a 320GB Xbox360 HDDan external hard drive is still very cheap and affordable.