Now i will get around to playing Psychonauts, down loads cost 1200 points.... now if only the larger external hd was not an arm or a leg in cost.....well there is always  DIY swapping

http://kotaku.com/gaming/fall-update/fall-update-announced-download-old-xbox-games-321940.php

the only down note on this for me is that it drastically lowers the likely hood, of more games becoming backward compatible I still have about 8 that are not (only 2 which i  know will never make the list as 360 versions of them were made)

Edit, damn did not see the fall update thread mentioned this.. 

finally lol, Sony and Nintendo have been doing this already lol.

heh very true, but it is intersting to see them change the size limitation thing, games like halo were rather large, compared to say super mario brothers 3 .... both fantastic games (Ill say mario much better) but even PS1 down loads are not that big yet they need some of those multi disc games, or get PS2 downloads, that would solve the Lack of BC problem

idk if they put FFVII onto the PSN Store that download would be larger then most demos including the Uncharted one (1.2 GBs)

I was thinking about that, but I dont see it happening if they really are planning some sort of remake, that would kill it chances

Yeah, Square/Enix doesn't do virtual console, seeing they can make more money on endless remakes.