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40gb lasted me about 3 months before I started having to shuffle stuff. And you never want to delete the installs incase of a sudden urge to play a specific game.

However if the 40gb is the cheapest you can get then go for it. Hard drives are cheap and 320gb is very affordable now and soon 500gb+ will be very soon.

As for games you picked great MP ones already (but a little bit for FIFA10 its slightly better).

PS: Get Disagea 3 aswell if you like SRPGs.