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I am trying to create a profile for my Xbox 360. It says I need a USB storage device. I bought one and I'm using it but it gives me the same response each time. What does that mean?

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From the Xbox 360 USB flash drive FAQ

My USB flash drive isn’t showing up at all

Have you configured your device yet?

  • This is the first time I’m using the USB flash drive

    Your USB flash drive might not be in the proper format. Plug it into your PC, open up “My computer,” right-click on the USB device, and select “Format.” Format the USB flash drive to FAT32. Make sure to save any files before doing this, as formatting will erase all data on the USB flash drive.

  • I’ve already configured it

    Try plugging in your USB flash drive after the console starts up and see if it appears. This is a very uncommon issue, but we’re aware of it and are working to correct the issue. For now, just remember to plug in your USB flash drive after startup

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