So after installing dragon age and downloading the bayonetta demo, i realized that i only have 3 gigs left on my 20 gig hd. 

My question is that what kind of hard drive is acceptable to microsoft. We know that datel memory cards are barred from usage after the recent update. I have been shopping around on ebay and came across these options and want to know if anyone had experience with this?

http://cgi.ebay.com/250GB-7200rpm-FAST-Xbox-360-HDD-Hard-Drive-WD2500BEVS_W0QQitemZ330381921258QQcmdZViewItemQQptZPCC_Drives_Storage_Internal?hash=item4cec4c0bea#ht_5890wt_1165

http://cgi.ebay.com/NEW-Xbox-360-Hard-Drive-250-GB-USA-SELLER-3yr-warranty_W0QQitemZ270496455689QQcmdZViewItemQQptZVideo_Games_Accessories?hash=item3efad85c09#ht_5467wt_1165

http://cgi.ebay.com/NEW-Xbox360-Xbox-360-120GB-120G-HDD-Hard-Disk-Drive-NEW_W0QQitemZ270487126889QQcmdZViewItemQQptZVideo_Games_Accessories?hash=item3efa4a0369#ht_6223wt_1165

Do you think the update from a few weeks ago will prevent me from using it? Will I get banned? Obviously i don't want to spend too much money but i rather not get ban. 

if it isn't officially licensed by Microsoft then it won't work.

thats the official story but MS never went into too much detail on what they ban for and what they block. Hopefully someone on these forums had some experience with this subject.

That's the way it is. Nothing but official MS HDDs work anymore. At all. End of story.

All official MS HDDs have security sectors on them, and if those sectors aren't there then the HDD won't work. You can copy the sectors to a new drive but you only get the same amount of space, so if you buy a 250gb drive and copy your 20gb sectors onto in you waste 230gb.

so lets say if i was borderline lacking in intelligence and end up buying it anyway, would it just not work, or will i get banned from Live for using this

It just wouldn't work.

cough cough http://digiex.net/downloads/download-center-2-0/consoles-homebrew/2713-xbox-360-250gb-hard-drive-security-sector-download-hddss-bin-hddss_250gb-bin.html

I was never here.

To my knowledge many of the custom drives work but I'm not sure if Microsoft will ever choose to block them. I just picked up a cheap used 120 gb for my 360 when I bought the arcade unit.