just install the latest update, get a 20 gb usb hdd and install your games to that. or put all your profiles and whatever else on it and install all your games to the xbox Hdd. it gives you an extra 16GB to play with.

hope this helps
oh and depending on which country your in i could get you a 250gb (non microsoft hdd) with a WD Hdd in it for around $80ish AUD + postage to where ever you live?