Originally Posted by
0x15e
A 512 and a core is fine for what you want to do. You'll eventually want a hard drive, but the $100 60GB live starter kit will get that done later on down the road.
As for the hdd swap, it can only be done with a 20, 60, or 120GB drive, and then only specific ones. You have to flash the firmware on the replacement drive with the one from an original MS drive so the 360 will recognize it. Even then, there's a risk they'll notice all the 120GB drives using the same serial number and start banning people. Best just to stick to the real drives, IMO.