Earlier this month we reported that the Xbox 360 is close to gaining USB storage support. This will allow your Xbox to store and load game files from up to two 16 GB flash drives. This new update will make console gaming with the 360 a much more portable endeavor.
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Major Nelson has announced that a system update to enable USB storage will be launching on April 6. Once the update goes out, you won't simply be able to plug your USB drive in and use it. You'll need to enable it in the system settings. You can even configure drives that are larger than 16 GB, but the Xbox will only be able to use that much storage.
Xbox 360 USB system update is here and Xbox 360 USB Flash Drive from Sandisk got unveiled. More details.