Can i play videos and store demos on an external drive with the 360?

You can play videos, music and view images from an external USB hard drive. You can not store anything on it from the 360 (saves, demos, games).
 
yeh it can be done, there also mods on the internet that instead of having the normal hd, a pc hard drive can be used instead.

that wouldnt help in this case however, because you can only get the normal amount of HD space, the rest would be not used... unless things have changed recently?
 
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