Have you connected it to Xbox Live? If you did you ould have recieved a prompt to get the update. If not, the 360 as probably made before the update and does no have it installed so connect it to Xbox Live to get it.
to topic creater-You must take the xbox 360 physically to your friends because if you just take the hard drive, nothing will happen since your xbox has a memory data of its own built into it
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