Well then I would suggest you to go for the 120gig version indeed. Only for gaming 120GB is more than enough.
And savegames are mostly very small, only a couple of hundred kb, while some games' savegames can be a few mb's, while I was backing up my savegames yesterday I noticed that the savegame for Chronicles Of Riddick was a little more than 10MB and the one for Heavenly Sword was around 7MB, but the rest should be around 500kb. Therefore savegames arent the things you have to worry about if it comes to your hard drive capacity.
Most of your hard drive space will be used for demos and game data (most games require some installment on your hard drive in order to be played, which should be a few GBs most of the time)
So ye, I would suggest the 120gb version, this saves you alot of money to buy extra games.
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