I haven't got this update yet, but is it so that after the update your xbox can't read any games or only the ones that come on the new 9.7Gb disks??
Because it would kinda suck if you can't play any more games on your older console, especially since i just paid €90,- to get mine fixed. (wich is around $127,98)
And if you get a new console how are you supposed to transfer all your DLC, saved games etc. to the new console, you have to buy a data transfer kit for another 60 euro's, $85,32...