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You Can Use USB Hard-Drives But They Wont Be Able To Do The Same Features As The Official Xbox 360 Hard-Drive And You Will Only Be Able To Use 16GB Of Memory.
Some of the places that one could purchase an Xbox 360 hard drive are GameStop and Best Buy. Other online retailers include Amazon and Walmart that will sell hard drives for the Xbox 360.
Xbox 360 is not compatible with xfat formatted hard drives. In order to use the hard drive, it will need to be reformatted. If you are unable to do this with the operating system that you have, you can download a third party format tool which will do the job.
On the older Xbox 360's, at the top. The Xbox 360 S, the hard drive is located at the bottom of the Xbox.
The Xbox original does a hard drive like any other console. The Xbox 360 however is portable and can be changed.