A reminder that today when you fire up your Xbox 360 consoles you'll be prompted for a system update. The update adds the previously announced USB memory support for the system.
This means you can use any 16GB USB drive, or partition off a larger drive to 16GB, for your saved games, DLC, and user profiles. This is great news for fans of co-op games, as it allows you to easily, and cheaply, store your gamertag and saved games on an external device to bring over to a friends house for some good ol fashioned couch co-op play.
Microsoft has put up an FAQ to answer all your questions regarding the update and support memory devices.
Source: Majornelson.com