i heared about the 320 gb 1 its called the xbox 360 ultimate with built in hddvd player, i read this about 1 month ago though so its not very reliable, so ur friends could of read the same thing.
The onboard hd-dvd was just a hoax, ms has publicly stated they will never do that:
Collins said Microsoft did not and will not bundle the HD DVD drive in Xbox 360 because the company believes that gamers are first and foremost gamers. If you look historically at the attach rates (i.e. the number of DVDs purchased per DVD player) you will see that game consoles have a single-digit attach rate, while dedicated DVD players have an attach rate in the mid-20s," said Collins. "Microsoft knew if we put in an HD DVD drive that we would have to raise costs and disenfranchise our customers (that are primarily gamers) as the unit would become too expensive.
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