i have a new xbox 360 (4gb) - and I wanted to connect my Sandisk 32 GB flash drive. I formatted it to FAT32 by rightclicking on format button in windows.
I then plugged into xbox before/after xbox 360 started.. i rebooted it 2 or 3 times(and ensured its not locked)..
I cant see the USB/flash drive at all as mentioned in below :
Most forums answers are outdated .. I went to xbox home->Settings->Storage(and checked memory also) - and I could not find any options
to configure USB drive.
All the screen shots are outdated on this topic.