One of the things I really hate about the Xbox 360 system is Microsoft's iron fist on storage systems. The PlayStation 3 has it right with the ability to use any hard drive but Microsoft likes to keep their profits from making you buy their hard drives or memory cards. Well, come next update
you won't be able to use any unauthorized Microsoft storage system so if you have saves or items on those you better move them onto a MS storage device or risk losing them forever.
Yeah, it's not cool and not something I agree with. You don't see Nintendo forcing you to buy their SD cards or Sony making you buy a Sony branded HDD do you?