For those of you worried about running out of space on your current Xbox 360 hard drive, you will be happy to know that the console will be getting a 320 GB hard drive to hold all of your games, movies, TV shows, downloadable content and music.
The new hard drive will be compatible with all the newer Xbox 360 S models, and includes a code to download the full game for LEGO Star Wars III: The Clone Wars.
I imagine one of the main reasons why Microsoft is releasing a bigger hard drive is because of there most recent announcement of all the network partnerships they've set up for the Xbox Live TV project. It makes sense that the Hard Drive may be used as a way to DVR the TV shows that we will be able to stream on the console.
The new 320 GB Media Hard Drive will hit stores in late October and will cost you around $129.99. To transfer your data, you'll need to either use a USB stick to copy the data manually, or in early November Microsoft will be selling a data transfer cable that is compatible with all Xbox 360 hard drives for $19.99.