Hi guys, I recently got a free Arcade Xbox 360, so you know there isn't a hard-drive in there at all, just a pathetic 512mb of memory. I know about the recent update where you can read USB flash drives now and be able to install games on there. I have a 500gb external HD that's formatted to FAT32, and the 360 detects it, but requires me to format the entire drive and lose everything on there. I don't have another drive to back everything up, so is there any way I can partition an additional 16gb on my external just for the 360 without losing all my data on there?
There are numerous utilities that will let you "Shrink" partitions (even one built into windows vista & 7). You can use these to make space at the beginning of the drive for a 16GB partition.