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Here's a quick step by step guide:

1. Plug your 500 GB hard drive into your Xbox 360
2. Go to system settings > memory then format it
3. Install xexmenu on a flash drive formatted with your 360. Use Xtaf and create the same folder structure as you would for installing the live version on a hard drive.
4. Plug your flash drive in and launch xexmenu from the game list
5. Download "hdd_compat_partition_fixer_v1" from the usual places and then FTP it over to your 360 (Google if you don't know how to do something).
6. Run the hdd_compat_partition_fixer_v1 default.xex to partition your hard drive for Xbox 1 games.
7. Download the hacked Xbox 1 emu files and then copy then into the "HddX" partition
8. Have fun.

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QUOTE(icon @ Sep 9 2010, 09:37 PM)

So this will give me the same functionality of the MS HDD without needing one?

Correct.

QUOTE(icon @ Sep 9 2010, 09:37 PM)

I don't understand the below statement.  Can you please elaborate?

Everything I'm writing is completely from memory so try to follow as best as you can.

Download "USBXTAFGUI". Copy the C0DE9999 folder from XeXMenu_v1.1-LIVE to "HDD1:/Partition3/Content/0000000000000000/". In simpler terms you need to make this directory yourself using Xtaf. Instead of "HDD1:/Partition3/Content/0000000000000000/" it would be USB:/Data/Content/0000000000000000/". You can just make the folders on your desktop and then go under the "Data" dir (in Xtaf) and hit add folder then select the "Content" folder you made which has the "0000000000000000" and "C0DE999" folders etc. (the C0DE999 folder should contain the 00080000 folder and C0DE99990F586558 [xexmenu]). Sorry if the wording is weird, I'm extremely tired.

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Yeah no problem. Basically just download xexmenu and follow the readme substituting usb:/data for hdd1:/partition 3.