of course it will play the games, storing them on a 512mb chip is another matter
First, to be able to play older xbox games you will need an update (as soon as you put a older xbox game in the 360 it will prompt you to download it)
second, I think original xbox games are way too big for the limited 512mb memory
I have halo 1, 2,oddword munch odysee(physical copy), and burnout 3 takedown (downloaded from live)
burnout 3 takedown is 2.3 GB in size So I don't think you can store xbox games on an arcade unless you buy at least a cheap 20gb hdd, you can find them cheap on the net google it
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