Hackers Already Working on XBOX 360 USB Update Exploit
Today, Microsoft has rolled out a planned update that allows the use of USB Flash Drives to be configured as memory storage on the Xbox 360 console; this allows for profiles, gamesaves, downloadable content and even games to be installed on any compatible USB memory device. All Xbox Live users will have to apply the update whether they want this feature or not as it is a mandatory installation.
It has come to the attention of modding groups that once the Xbox 360 associated files are saved on a USB memory device they appear unreadable on any computer, with the folder list displaying itself as empty. Futher investigation by the group has revealed that a folder named XBOX360 is kept hidden, and all Xbox 360 transferred items contained within it are stored together grouped in files that are unable to be individually extracted.