I did some reading around the forums about DLC and TUs... below is what I found. Can someone confirm that all this information is correct and post any errors / corrections / additions for it?

Thank you-An external hard drive cannot be used for downloadable content (DLC) or title updates (TUs), redardless of whether
the hard drive is formatted for Xbox 360 storage or as FAT32. DLC and TUs must go on the internal hard drive (the
hard drive connected to the side of the Xbox 360).
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-You do not need every single TU for a game, you only ever need the latest TU, which always includes earlier ones.
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-TUs will go in one of two places:
Hdd1\cache\
OR (for newer games)
Hdd1\Content\0000000000000000\*game#*\000B0000\
TUs do not need to be patched / hex edited - you simply place them in the correct location and they will work. The
game will not go through any special update process when you start it, the TU is active and is automatically
"applied" to the game when it starts.
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-DLC go in the following location:
Hdd1\Content\0000000000000000\*game#*\00000002\
DLC will need to be edited to work with your Xbox 360 - this can be done using Yaris Swap, XM360 (launch it from the
Xbox 360), or, you can use DashLaunch and enable the "contpatch" option.
You can open DLC / TUs in Yaris Swap to find the folder location for the DLC and TUs.
You must have the correct TU for the DLC to work.
...the same things apply for Xbox Live Arcade (XBLA) games.
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