I am using a brand new 4gb Xbox 360 S and everytime I try to log in it attempts to download an Xbox live update and then gives me this error message. I have seen other threads addressing this problem that suggest removing and reinserting the hard drive but that can't be done with the 4gb model. Is there anything I can try?
My first issue was actually keeping the harddrive formatted. It would keep unformatting by itself and then saying there was no storage option detected so I have a feeling the harddrive may be corrupt but I don't know how or anything I can do about it.