I don't think that M/S will ever allow transference to an external USB Device, it doesn't make sense from a Copyright perspective. If one could transfer save-game files, then it stands to reason one could transfer movies/tv shows over to the external drive. Once that content has left the safe DRM confines of our happy little consoles, it would be a matter of hours until we could download it from our local torrent sites, at which point the copyright holders would be instantaneously panty-bunched over the whole state of affairs.
But I'll throw this out there for the moderators to edit........
The 360 uses a standard laptop hard drive from all I've read............and that casing is just plastic................hmmmmm.
Anyone tried it yet? I ain't quite ready to rip mine apart. lol