Internet: yes.
Basically, if you want to play multiplayer games, you'll need to get a gold membership. I think you get a 1 month free trial of gold when you first setup your xbox account and stuff, but after that you'll have to pay. Also very occasionally you'll get something like, a free theme at Christmas, or 50% off some random Arcade game if you have a gold account, but basically the main appeal is multiplayer gaming.

Don't know what it's called, but, I bought it new a couple months before Christmas and it has a 60Gb hard drive. It hasn't broken yet and I've really played the crap out of it. To be fair though, I had to install a few games to my hard drive to stop them freezing my console, so, I guess it could be overheating a little bit.

1. Assassins Creed 2 (Good to see a lot of other people not put off by the repetitive first one)

2. Modern Warfare 2

3. Battlefield: Bad Company 2

Although it's not tracked so I can't tell for definite, I'm pretty sure it must be peggle for me, I have several days of gameplay for that now.

I completed COD4 on veteran, including mile high club, so it can't be THAT hard. I reckon the hardest ones are games like FIFA where you have to win X ranked matches online in a row.

It must do something, because my xbox 360 would freeze quite a lot when playing GTA4 or The Orange Box, however once I installed the games to the hardrive they played perfectly fine. Takes up a hefty amount of hard drive space though, I'm glad I waited around for 60Gb hard drives cause otherwise that wouldn't really be a decent solution.

I've got both COD4 and Battlefield: Bad company, and personally, I prefer Battlefield because it's slower. Waiting to respawn is a pain compared to COD4, but, it makes sense when the whole game is slower I guess. I have to admit, I've almost never felt like I'm playing on a team in Battlefield though. Very occasionally I'll go on Conquest, and I'll find a like minded person and we'll go storming houses together, then it feels epic. Just taking a side of the house each, then joining back up with them once it's clear. Move inside taking opposite corners of the room. Someone runs in shooting so you cover their back, kill the enemy, throw a medkit across the doorway to them for a nice 15 healing points as well as keeping them alive to cover your back. Moments like that feel awesome, but, rarely do moments like that happen. At the same time though, I've never felt in a team on COD4, things like team deathmatch don't feel teamy at all to me, however, I suck pretty hard at that game so that could be the problem.