My 360 came with its own 20 gig hard drive.  I got the premium bundle and saved money in the long run.  However, due to the small capacity of the original drive, you will end up purchasing this item sooner or later.  That is, if you want to keep any of your content.

Yes, the specifications are a bit deceiving.  The 360 comes with a 20 gig drive, but it arrives almost half-way full of preloaded content.  Basically, you will be lucky to have 10 gig of space after you install the update.  How long will it take you to fill up that space?  Well, that really depends on what you download.  The content that you load will determine whether you will decide to delete them to free up space, or whether you will want to keep them and just buy this additional drive.

How about movies?  Well, in Citan's opinion, there really is no reason to keep these movies in your hd after their expiration.  Since you can no longer play them, you may as well delete them and free up space.  Demos, trailer, music, etc.  You may want to keep those.  And this is where you will run out of room.

The replacement drive is overpriced.  And undersized.  But due to the console's design, you will not be able to substitute just any serial hard drive.  This is the only replacement available.  No one can ever say that Microsoft doesn't know how to get the most money out of its customers.  They didn't get to where they are by being otherwise.

Whether I give this drive my recommendation or not is irrelevant at this point.  This is your only choice, should you run out of space in the original drive.  Microsoft will eventually release a larger drive.  That is pretty much a given.  I can only hope that it will work with the current console and not just the "version 2" that is currently in the works.  If you can, wait for the new drive.
My 360 came with its own 20 gig hard drive. I got the premium bundle and saved money in the long run. However, due to the small capacity of the original drive, you will end up purchasing this item sooner or later. That is, if you want to keep any of your content. Yes, the specifications are a bit deceiving. The 360 comes with a 20 gig drive, but it arrives almost half-way full of preloaded content. Basically, you will be lucky to have 10 gig of space after you install the update. How long will it take you to fill up that space? Well, that really depends on what you download. The content that you load will determine whether you will decide to delete them to free up space, or whether you will want to keep them and just buy this additional drive. How about movies? Well, in Citan's opinion, there really is no reason to keep these movies in your hd after their expiration. Since you can no longer play them, you may as well delete them and free up space. Demos, trailer, music, etc. You may want to keep those. And this is where you will run out of room. The replacement drive is overpriced. And undersized. But due to the console's design, you will not be able to substitute just any serial hard drive. This is the only replacement available. No one can ever say that Microsoft doesn't know how to get the most money out of its customers. They didn't get to where they are by being otherwise. Whether I give this drive my recommendation or not is irrelevant at this point. This is your only choice, should you run out of space in the original drive. Microsoft will eventually release a larger drive. That is pretty much a given. I can only hope that it will work with the current console and not just the "version 2" that is currently in the works. If you can, wait for the new drive.