According to an Amazon customer, you need the Microsoft cable to properly do this:
"If you have existing data on your old console (which you probably do if you're buying this), you'll need a transfer cable (which works both on and between the older and newer models of the 360 so keep it around for future), which is sold separately for about $20, so order it at the same time. It's best to connect the new one via the cable first rather than install the new one, then attach the old one to transfer. I did it the second way and had lots of troubles so put I the old one back in and did it the first way without troubles. My slot is at the bottom. There's a very small square in the vent toward the back you push to open. I had a bit of trouble seeing it at first as it looks the same as the vent. Anyway, once you've connected the console with the new hard drive, a prompt will come up after a few minutes which will ask you if you want to transfer to or from the console. (if it doesn't come up, go to settings, that might prompt it) If you hooked the new one up to the transfer cable, then you'll transfer from the console. After you've transferred your information (I had a 320GB that only had about 50GB left on it which took 9 hours to transfer, so allow for enough time. In other words, don't do it just before you plan on playing a game). Afterwards, turn off the console and remove the transfer cord. Open your console's hard drive port, take out the old hard drive and put in the new one (be absolutely sure it's all the way in). You'd think you were done, but not so, now you need to transfer your licenses. From the Dashboard, go to Settings, then Account, then click License Transfers (some data can't be used again until you do this). Still not done! Now go to download history, which is just above where you clicked License Transfers and re-download anything you've noticed that you're missing."
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