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I'm happy with the arcade because I'm not thinking of going on Live anytime soon. Plus games themselves don't hold a ton of memory.
Really? I can't live without LIVE!
Don't get the arcade. Some add-ons you will need to play like half the maps in some games and you won't have enough memorey. And you won't be able to get demos
Maps in what, Halo 3?
How much do they take up? Plus I'm getting the hard drive for it soon.