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Signing UpStep 1Materials
-An unused Xbox 360 hard drive
-The Hard Drive Transfer Kit cable that came with the 120GB hard drive
-A disk format utility for your pc (this tutorial will use Windows Disk Management)
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Another way to reuse it is to (one of my favorite things) void the warranty and extract the 2.5" HDD and use it for ...I dunno... lots of stuff. And if you get a USB adapter case for it that might be a bit more convenient, too.
nice one dude
that's no longer true, as of the 6th April 2010 xbox 360 consoles that are connected to xbox live will receive an update that allows them to use usb storage.
also the xbox would have recognized it anyway it just wouldn't save to it.