I know there's tons of advices get thrown around here but if you are really strap for cash then go with Arcade unit. Then when you are ready just save up some money and get the 60gb HD. Who know by then it might drop in price. You can also get 20gb for cheap but I don't recommend it since you will end up upgrade it down the road because there are so much stuff on XBL not to mention the install game feature.
Arcade pack is perfectly capable of playing majority of the games. There are only a small numbers of game on 360 that require HD.








