you need to use a prog called MAC DRIVE and format the usb drive to HFS+ then you can use it for movies and music (divx, wmv-HD). I use a 500gb usb WD drive.
after you format it to HFS+ you will be able to use the usb drive on pc, mac, and 360. also NFS+ removes the file size limit.
its funny to me that the 360 can read a apple format (NFS+) and not ntfs
ill try to check back today before i leave, cause im gonna be gone for atleast a week.
THIS CANT BE USED AS A REPLACEMENT FOR THE 360 HDD!!