Taking in count the "60 euros back offer" for GTA4, you have for 205 euros :

Xbox360 core + 2 paddle + PGR4 + Halo3 + GTA4 !!

http://www.maxconsole.net/?mode=news&newsid=27667 

New € 199 Xbox 360 bundle hits Europe tomorrow A new €199 Xbox360 bundle is set to hit Europe tomorrow. The bundle contains a core Xbox 360 console, a 512 MB memory card, two wireless controllers, Halo 3 and Project Gotham Racing 4. (Thanks Andre)

(from what I remember, the offer end the 15th June)

EDIT : DAMN, this is the GTA4 offer that end the 15th june !

This offer is not limited  

sorry all

That is a smoking f***ing deal. If that doesn't help Euro sales, I question the sanity of Europeans. :D

Can anyone tell me if the Arcade edition with so few storage space isn't actually a 'handicapped' 360? What problems might I face in comparison to the Elite, if any?

Ajax - if you're asking about what problems does not having a HDD bring to you. Well, that would be impossible to sign up to Live.

so if I get a Arcade 360, I can't play on Live?

 Completely untrue. You can sign into Live just fine without a HDD. What you can't do is download most demos or play a few online games (right now all I can think of is Burnout). It could also become a problem to download map packs and large DLC for some games.

Down the road, you can always buy a HDD and plug it into the 360. Then you basically have a 20GB unit without a chrome DVD tray. 

Yees!

The only issue is that they charge you through the nose to buy the HDD separatly isn't it ?

I just saw 20Gb Xbox360 HDD for 99euros on Amazon.fr...

oh ok, so the only things compared to the most expensive edition of the 360 game-wise that I won't be able to do is download demo's, play some online-games and download large extra content? but I can fix all this by buying a HDD?

You can usually find them used if you shop around a bit.