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Premium is an ok deal. I wouldn't go for elite as there is plenty of space on the premiums 20 Gb hard drive.

In reply to xbox live comments above...dont expect matchmaking as smoothly as mario kart but do expect stat tracking, in game chat, msn messenger, voice masking, and better skill matching in some games. Not to mention having most of your library be online compatible rather than 5-6 games. I have yet to play a game on the 360 that didn't have online leaderbaords.