I did just what you are going to do. I have a tight budget, and when I got my xbox 360 i got the arcade version thinking that the memorycard was all i needed. But now, a few months later my "save location is full" so Ihave to get a hard drive. My budget is still tight, so I got the 20 gb hard drive off eBay. I ordered it three weeks ago, but i haven't gotten it yet. Its probably lost in the christmas chaos. I hope I'll got it soon though, cuz I want to try out Portal and Half-Life from The Orange Box, but I cant start a new game,because my save location is full. Also, you can't download demos or anything like that to the memory card. Or, I guess you can, but mine doesn't have enaugh avalible memory. In other words, I wish I'd gotten the Elite version.
So, if you get the arcade version, you'll probably regret it, but its your choice.
But to answer your question:If you want game recommendations, check you the game recommendation sticky.
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