So it is impossible to connect both consoles using a usb to usb cable :-( I have looked all over the net but haven't found any references to be able to do this (although in theory it should/could be possible)
I ended up borrowing my mates external hard drive. I had to copy all of his stuff onto my PC before I formatted it, copied everything onto it, downloaded all to new Xbox, reformatted it and finally transferred all of his stuff back onto it!! It would be so much simpler if you could just link 2 xboxes together!!!!
Thanks for your advice :-)