why is it a problem? installing data onto the HDD allows games to run better. There are some games on the 360 that will require an HDD for installs too. This type of thing has been known to happen since the original Xbox as that had installs too. Plus an 80GB laptop HDD to upgrade is only $59. http://www.newegg.com/Product/Product.aspx?Item=N82E16822136099