So I see that you can easily drop the 120GB HD's into the X360 Slim models - they just drop onto the SATA connector once you remove the old drive from it's previous model drive casing.

http://www.youtube.com/embed/JW-ow2GHjvc

I can't find any reports of anyone being banned from XLive for this, and I can't see why it would even be a problem. My biggest issue is that I don't want the SATA connector inside the slim Xbox to get worn out by a HD that is essentially free-floating inside the case.

EDIT: Found that they are making drive enclosures specifically for this. Sweet!
http://www.amazon.com/hard-Drive-enclos ... B004YHZREE

Any suggestions or additional info?