If I remember correctly, you can now use a thumb drive for your saves on a Xbox 360.
That makes me wonder, can you install game onto the USB drive, as you can normally install a game onto the main hard drive to shorten loading times.
The reason I want to know is that because my Xbox has a 10GB 5400 RPM drive (it's old).
But I want to get a new Xbox slim, put a brand new (one of those 667GB triple platter versions) 7200RPM Samsung 2TB HDD viaa SATA to USB adaptor and housing. I know it'll be limited by USB 2.0's 60MB/s bandwidth, but I imagine it'd make a hell of a difference (if those old cheap 5400rpm note notebook drives made a difference, then this certainly could). Then I could also finally off all the music/movies on my computer.
Or is USB drive support limited (32GB or something), and you can't install games, only saves?