20GB HDD is really cheap right now and you don't need a bigger HDD as long as you are not into Video on Demand or installing 3 games at once. I bought a 120GB for 100€... okay, it sucks but it is a once for all thing. To be honest it was a Xmas present. :D
I would recommend you
- Mass Effect,
- Fable2,
- Star Ocean,
- Infinite Undiscovery,
- Tales of Vesperia and
- Lost Odyssey.
That should be the RPG-Overkill for you.
There are a lot of fun games that are not THAT big franchises but still are a lot of fun. Crackdown and Left 4 Dead are 2 great games.
I am trying to hype another person here: GET Alan Wake as soon as it is released.
You can play every Xbox360 game without a update or a HDD.
With your free silver membership you can do what every other gold member can do, except playing online. But there is a free XBL Gold trial in almost every game published by MS. So Fable2 is even more worthy right now :D
Imagine not having GamePass on your console...