This is very simple to do, however I have had a fair few messages about this lately, and many people dont even know its possible. So here is a quick tutorial on how to use a USB memory stick up to 16gb, to store save games, profiles, games and dlc. Note: you can have a maximum of 2x usb memory devices / hard drives configured for Xbox 360 use connected to the console at any one time. The maximum space you can reserve for 360 use on each device is now 2TB with later dashboard updates.. First connect your USB memory stick to the consoles USB port, it doesn't matter which one: Go to system Settings: Select Memory: Now select your USB storage device: You will have two options, "Configure Now" and "Customise": Configure now will use all the space on the USB device for Xbox 360 storage, Customise will let you choose how much space you wish to reserve for use on the Xbox 360: The options shown if you select Customise: You will be warned that everything will be erased from the USB device, so be sure if you have anything on it you want, copy it elsewhere first: The USB storage device will be tested, if its fast enough to be used in the Xbox 360 it will be configured: All been well your memory stick will be setup fine: You will now be able to access the content stored on the device from within the Xbox 360 dashboard: Games should ask you if you wish to save on the USB drive from now on, you can also copy your saves on to it as a backup. That's it, a very simple way to increase the storage capabilities of your 360, or an easy way to have a big memory card you can backup all your save games and content to. I personally have my profile and all my saves on a USB drive, that way I can continue playing no matter what Xbox 360 i am on, I find this very useful when having Xbox 360 lans where i might not always be on my own console.