I have an older USB hard drive that I've used with my Xbox 360, but I have trouble with it showing up in the system when I boot the Xbox. It'll be connected, but just wont show up. Sometimes I have to reboot the Xbox 5 or 6 times before it will show up in system settings and be accessable - which is annoying as all get out.
Thought about buying a USB thumb drive to see if I have better luck, but didn't know if they'd work and if they did what I'd need to look for as far as compatability. I've seen Walmart has 16GB USB 2.0 available for about $10.00. Would something like that work or is there something else I need to look for?