My friends bring their hard drives over and we would switch them to play their games and whatnot, I bought the 360S and cannot do it, is there another way ?
No. The old 360 hard drives don't work with the new slim console. Have your friends copy there save files to a USB flash drive if they want to use their content on your console.
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Just to add to what An Xbox Dude said, you will need a USB flash drive that is at elast 1GB in size, and a maximum of 16GB.