QUOTE(Phazzer @ Jan 21 2007, 06:50 AM)

Try formatting in NTFS. I use a 1gig flash drive for some of my videos and it's formatted in NTFS and it works just fine. Of course my xbox is one of the most recent made (Purchased Dec. 20) so I'm not sure if that has to do anything with it. Anyway try formatting as a primary partition with NTFS.
That's actually how I formatted mine to begin with. Primary partition was NTFS. 360 wouldn't recognize it. It was a 500 gig NTFS partition though. Maybe it's not a Fat32/NTFS issue at all and is simply a matter of how many gigs the 360 can deal with. The limit could be somewhere between 320-500gig. I could test that out, but I've already loaded up my new drive with so much data that I wouldn't be able to easily re-format it without losing a lot of files. Just for the sake of science I may test out a 300 gig NTFS partition (set as the Primary partition) someday and see what happens.
I've managed to get around my external hard drive issue for now by just using TVersity. Originally, I was under the impression that 802.11g wouldn't be fast enough to stream HD content, which is why I thought to get an external drive and connect it directly to the 360. Turns out I was wrong about the streaming. WMV-HD movies in 1080p stream just fine over .11g. I currently have the external drive connected to my PC, with the contents shared in TVersity. It's not quite what I originally had in mind, but it works just as well, and I don't have to move the drive back and forth between the 360 and PC. It's not a working solution for people without a way to network their PC and 360 though.