A standard USB memory card will not work sadly. You can't move the save files without buying something special for it. You can use a memory card to transfer from system to system, or a special card to bounce between systems and your PC. I know you can re-download old XBLA games, but I don't know how hard it would be to recover a gamertag. I know it can be done, but I don't know what is involved exactly. If you have a memory transfer device though it is as easy as pie.

Above has most covered.............

Regarding recovering your gamertag...........

I played gears 2 with a buddy on his xbox and of course i wanted to use my gamertag, it took approx 70 mins for all my gamertag info to download on to his box and then i was good to go.............

Of course once i was done i had to re-download my gamertag info back to my own xbox which again took 70 mins

I like the fact that your tag is specific to the box you most recently used, it meant once i had finished playing on my buddys xbox and re-downloaded the info on to my box he couldn't "accidently" sign in using my tag.

1) Your best bet is a data transfer kit.

2) Transfer kit should port 100% of your data, including profile, onto the new HDD.

3) If they aren't transferred (as well as DRM) automatically, yes, it's easy. You can go online, and use it here. Just transfer ownership to the new HDD, and then get on XBL and re-download the arcade games if need be.

If your interested, you could always do the 120GB HDD mod...Get 120GB of memory for less than a 60GB HDD:

DIY is here: http://www.youtube.com/watch?v=3WR9inneEkA

The drive that is needed is a 'Western Digital WD1200BEVS 120GB 2.5" SATA Hard Drive 5400RPM 8MB Cache'. You can buy them for $54.99 here on newegg.com.

So $54.99 for a 120GB HDD may not be too bad

Umm bad info all around in this thread. I just did the EXACT same thing.

A standard memory card will work for everything except your music and files that are to big to fit on the memory card.

And recovering your gamertag is easy as pie. You just hit recover gamertag and put your name in. Whoever said it took 70 minutes, well buddy you better upgrade your dial up connection cause mine was basically immediate.

I always thought the way they did this was stupid. My friend upgraded from a pro model to an elite but still in 6 months he hasn't been able to get the cable needed to transfer his stuff over. He can't find it in stores. Poor guy is still using the low space HDD, just paid more money for the console to be black, now with a grey bump.

The amount of misinformation in this thread is scary...while you have some people who know what they are doing, some comments are flat out ridiculous.

You're in the UK, so I'd go here first: http://www.xbox.com/en-US/support/systemuse/xbox360/console/datamigration.htm
this says its for transfer from the 20 - 120 hard drive, but I'm sure it will work on the 60 as well.

This is a fairly painless task (I went from launch "Pro" to an "Elite"), I hope you enjoy your new 60GB (and I know you will enjoy the quieter operation).

 You guys are all round the twist for paying full price for a 60\120GB drive. All you need is a WD Scorpio BEVS SATAII 2.5inch laptop hard drive that costs £30 or $45?

Then look for a guide on flashing the firmware to be compatible with the Xbox 360's 120GB drive. It's very easy loads of people do it and Microsoft don't ban you for doing it. ALL the drives on ebay are these drives so microsoft would never ban you for doing it due to ignorance.

I lol so much when I read the fanboys moaning about the ridiculous price of 120GB drives (which is true).

Further more, if there is nothing illegal about doing this if you use your own 120GB security sector to flash it.

It takes about 20 mins of work, have a look for a guide on google. Both my Xbox 360's have 120GB unofficial drives and combined they only cost me £20 each after selling the old 20GB 2.5inch drives that were originally in the enclosures.

You don't even need a transfer cable. You just need a hard drive adaptor that costs a few quid and you can copy across all your tunes\saves\whatever to the new drive.

OK ... from one guy that just did this to another ...

There are two things you need to know. First, getting a new HD like the Scorpio will give you the space you need, but you will still need the enclosure to hook it up to the 360. Messy. You still won't be able to get it off the drive. The second is - you will have to go to xbox.com and authorize the 360 to use your old stuff on your new drive. More on that later ...

There are two things you can do this. If you have just saves you want moved, buy a memory card. Copy them over until it's full. Attach the new drive and download the data. Keep doing the process until everything is transferred.

The easiest is getting the data transfer cable - the one that hooks up via USB and attaches to the NEW DRIVE. Make sure your new drive doesn't have data on it or it will be wiped out. Anyhow, it should take under an hour and put all your old stuff on your old drive onto your new drive.

For me, I bought a 120gb drive but found out it had 'Shivering Isles' on it and I could play it on my 360. So, I wanted to keep it and tried to figure out how to get my old stuff off the old drive. Finally figured out what I needed to do.

I put the old drive on and using my 256mb mem card, I filled it up with all my saves - as many as possible. Then, I went into my history (I had already authorized the new drive to use my old LIVE downloads) and redownloaded everything. Problem solved. Now, I can get that Scorpio and try to see if it works. It would be sweet to have 2 120gb HDs on my 360. I'd install most of my games on it.