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On the older Xbox 360's, at the top. The Xbox 360 S, the hard drive is located at the bottom of the Xbox.
How much can the XBOX 360 20GB hard drive hold?
The Xbox Arcade is an Xbox 360 and it comes without a hard drive. What you are calling an Xbox 360 I'm assuming comes with a hard drive and if you are thinking of buying an Xbox I recommend not buying the arcade as you cannot save games without a hard drive.
yes you can but you will need a hard drive
yes, you can. you can copy music to the xbox 360