Let the hive mind of Engadget get that for you.
"I need help! I want a small pocket camcorder but I'm not sure which one to get. I don't want to fall into the hype of the Flip because I worry two hours won't be enough. What should I be looking for when considering a small camcorder and where can I get a good quality one with expandable memory? Thanks!"
You have to be connected online thru "Live" via broadband internet for it to automatically grab the update. Just so you know anytime the 360 has a game in it starting it while being connected online it automatically checks for any updates and ask for you to accept them. Enjoy your 360!