I have movies that are .vob (i don't care if I have to reformat it) but I want my 700gb external usb 2.0 hard drive to be compatable with my xbox 360 I have to format it to fat32 right? and then I hear that fat32 doesnt support files bigger than 4gb but my movies are uncompressed files from DVD shrink
FAT32 doesnt support individual files more than 4gb, on a typical DVD video TS folder you have several VOB's each about 1gb in size. Unless you chose a non-standard way of ripping your DVD's (example you choose not to split the VOB) you shouldn't have any problems. So even if your DVD folder is 5gb in size, what counts is the sizes of the files in the folder.
This link might help you. http://www.llamma.com/xbox360/mods/USB Hard Drive Mod.htm and this one.. http://www.buzzle.com/articles/how-to-add-an-external-hard-drive-to-a-playstation-3-or-xbox-360.html