You can use any size of the compatible Western Digital hard drives, but on the xbox 360 it will be limited to 20, 60, 120 or 250gb (120gb in your case).
I did it with a 320gb Scorpio Blue and have a shiny new 250gb hdd now :)
Hello,
is there a way to restore Partition 2 to the HDD when I only have one sata connection on my pc?
I can't boot Windows and have the HDD connected at the same time.
I already downloaded the Partion 2 file somewhere on this site.