Yes you have to have Xbox live to update your flash drive.
It will hold your xbox live account but not much more
You insert your CD into the CD-Drive. But i fink you need the update from xbox live
Sadly, you cannot. you have to log on to xbox live to be able to download xbox original or arcade games. you can however buy xbox original games as long as you have a hard-drive.
All Xbox 360s can play all the Original Xbox Games on this list http://www.xbox.com/en-US/games/backwardcompatibilitygameslist.htm provided that you have an Xbox 360 Hard Drive and can update the game with Xbox Live or through a computer and USB flash drives or DVD/CDs
no it stays on your hard drive
Firstly, get your network status on the Xbox 360 network settings. This will tell you if connected or not etc. If you know its the update, you can go onto the xbox website and download the update manually. There will be a installation guide to apply the update.
update games yes they do
Games releised after the update's reliese should carry the update. You can also get the update through Xbox Live.
Um update? Well to get the current dashboard and stuff you need to have XBOX LIVE and it will update as soon as its available. If you don't have LIVE then it will have the update that was current when you bought it/
No, it must be downloaded to your HDD from the Xbox Live Marketplace.
nope
To update you just connect to xbox live and if theres an update available it will automatically update