USB Support coming to the 360.
On April 6, a dashboard update will allow you to store your save games, profile and other bits of data on a plain jane USB key. You'll have to "prepare" the key through the xbox dashboard to format the key either completely or use a certain portion of it, leaving the rest available for normal use.
Maximum capacity will be 16GB, minimum 1GB.
This is also work with USB hard drives, but the limits still apply and the performance won't be as good as a USB key.
Check it out below: