I solved it , i happen to be a linux user. My problem was i am a little baked and clicked root terminal instead of normal terminal and i didnt know what the root pass. Which hadn't been set yet. Anyways i open a normal terminal set the root password for the hell of it. and just ran cfdisk and set up my partitions , i left about 10gb free for save games and shit.
will the 360 see 10gb and use it just as its part or would it overwrite the linux partitions and use the whole drive?
I am guessing it is only capped on the upper limit and it will format a whole drive up to 250Gb now that they have a bigger drive out.
Back to the point i ran the install script and it started running over again like before now i have to reboot so got to finish my post. Oh yea i am browsing the web and checking out xboxscene on gentoo on the 360 its pretty quick for a live cd. I wish they had a version of Gentoo to install to the HDD but Ubuntu 9.10 is what i am using for my second OS on my PC. Sorry to waste your thread space with my garbage