A required storage device has been removed.

Hi, that's usually an indication that the 4Gb internal memory unit failed I'm afraid. You would need to start the repair process.

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support.xbox.com/.../repair-process

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If you only had the console very recently try returning it to the retailer for a replacement.

Unfortunately I am not under warranty.  I am proficient in electronics however and would be confident I could repair it myself if I thought that was possible.  Can I remove the internal flash drive and replace it?

Self-repair is against the terms of service so doing so would put your console at risk for being banned.

Hmm, interesting.

Ok, how about if I buy a usb flash drive or hard drive and use it on my console, is that a possible work around?  I really don't feel like paying microsoft €100 to repair an error that shouldn't happen and I didn't cause.

I'm not sure if it'll work, but it's worth a try.

Ok so I have fixed this problem.  This is how I did it.  

[Mod Edit - Self repair should not be encouraged on the forums as it is in violation to the ToU/CoC], this is straight forward and easy to do, no one should be put off by the thoughts of not knowing what to do, there are plenty of helpful youtube vids out there if you are unsure.

The 4gb internal storgae device is located underneath the disc drive.  I simply removed the device (a simple case of lifting, it is attached by 2 sticky rubber pads and a small clip)

Then I pieced the console back together and inserted a hard drive in the slot provided at the side of the console.

Problem fixed, working great.

Now I have a 120 gb hard drive in my console that cost me €30.  If I had sent this off to MS I would have been charged €100 and still only had 4gbs of space.  

Nice work mate... im happy it worked... Good luck in future games...

You should be aware that by opening the console and self repairing it you broke the terms of use. This often leads to a console ban so don't be surprised if sooner or later you turn the console on one day to a message informing you of this.

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I certainly wouldn't encourage anyone to attempt this, not only from a safety point of view but also because of the console ban scenario.

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Using a hard that has been modified to fit a another console is also a breach of the terms of use so your risk may well be doubled, that and the fact that you posted this on the official forums may not have been the wisest move you made today.

You should be aware that by opening the console and self repairing it you broke the terms of use. This often leads to a console ban so don't be surprised if sooner or later you turn the console on one day to a message informing you of this.

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I certainly wouldn't encourage anyone to attempt this, not only from a safety point of view but also because of the console ban scenario.

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Using a hard that has been modified to fit a another console is also a breach of the terms of use so your risk may well be doubled, that and the fact that you posted this on the official forums may not have been the wisest move you made today.

LOLOLOLOLOLOLOLOLOLOLOL

you my furry little friend are a brainwashed little lamb.

Firstly, the xbox i fixed is in no way associated with this username acc.  I look forward to MS banning me on this acc for an invalid unjust reason, that would spell trouble for them.

Secondly, in my country, we have proper laws, so that I, as a consumer of a product, once purchased, own said product and can do whatsoever I like to it.  I could chuck it off a bridge, I could burn it, or, I can as I have done, open it up and fix it.  

Wanna know why?

Because its mine.  I paid for it.  

There isn't a thing Ms can do.

I won't be banned.  Guarantee it.

Guaranteed.

You may wish to actually read the terms of use you agreed to.

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www.xbox.com/.../LiveTOU

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You can’t use unauthorized software and hardware to access the Services, nor can you modify an Authorized Device in any unauthorized way (e.g., through unauthorized repairs, unauthorized upgrades, or unauthorized downloads).  You agree that we have the right to send data, applications or other content to any software or hardware that you are using to access the Services for the express purpose of detecting an unauthorized modification. 

You must not attempt to disassemble, decompile, create derivative works of, reverse engineer, modify, further sublicense, distribute, or use for other purposes the Services, any game, application, or other content available or accessible through the Services, or any hardware associated with the Services or with an Authorized Device. If you do so, we may cancel your account and your ability to access the Services, and pursue other legal remedies.  We may take any legal action we deem appropriate against users who violate our systems or network security, this contract or any additional terms incorporated or referenced in this contract. Such users may also incur criminal or civil liability.

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I'm not about to get into the ins and outs of what can or can't happen, I only wished to advise you of what could happen.

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As for the hard drive, there is no 120GB hard drive for the slim so that must have been modified to fit the slim. This sticky thread is worth a read.

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http://forums.xbox.com/xbox_forums/xbox_support/f/7/t/4558.aspx

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Good luck for the future.