I was looking for a USB drive that would work as additional storage with my Xbox 360. Unfortunately, there is no information regarding the minimum performance requirements of a USB drive that will allow it to pass the tests that Xbox performs.
So after much searching, I found the perfect way of finding a list of drives that will work with the XBOX – Amazon’s user review. Though this was not easy, as I could not find a way to search reviews of only products in a given category. So here are some that I found:
Kingston Traveller USB drive on Amazon.com which seems to work with the Xbox 360 to provide additional storage. http://www.amazon.com/dp/B002ZBQ76S. (Currently available for $20 for a 16gb model). (Amazon.com reviews by customers who used it with their Xbox)
Finally, there is the Xbox branded Sandisk drive (which costs approx $45 and is the most expensive).
Note: The maximum supported memory stick size is 16gb. Although you can attach upto 2 to get 32gb of extra memory.