Alright, today I'll be explaining:
-What type of hard drive to buy
-How to format your hard drive
-How to convert your videos to .WMV
-How to play the videos on your xbox


Now you need the actual hard drive.
You need a portable USB hard drive.
Mine is 320gb and I bought it at radio shack. HERE: You must login or register to view this content.

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Once you have both of those, you're ready to start.
-Plug your hard drive into your computer and format it.(Start/Computer/Drive/properties/format)
-Run Maxtor MaxBlast HERE: You must login or register to view this content.

Follow these instructions:

[nomedia="https://www.youtube.com/watch?v=CrNZgVIkDg0&feature=related"]YouTube- How to Format a FAT32 Partition Larger Than 32GB (HD)[/nomedia]

-Xbox360 consoles only read Fat32 hard drives

Congratulations you now have properly formatted your drive.
Now it's time to reformat your videos:
-Xbox reads .WMV videos ONLY
-Downloaded videos need to be reformatted.
-In order to reformat you need more soft ware.
-I use Aimersoft HERE: You must login or register to view this content.
-Select .WMV and wait patiently for the files to convert

Drag and drop your new .WMV files into your hard drive

Alright we're almost done.
All you need to do is:
-Start your xbox
-Go to video media
-Select portable hard drive
-Play your movie

ALL credit goes to me:p and stuiedaman