if you like you can always play the old maps on GoW1 without buying GoW2. In GoW2 it's an extra. Maybe a bit lame, but hey.
rrod does not affect your hdd. You dont need a mem card unless you want to carry over saves to another xbox i believe
go for a 120 gb hdd, and install. It will save you a lot of noise from the spinning disc. Setting up a user is easy.
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