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The New Xbox Experience requires at least 128 MB of storage. That means that some Xbox 360 owners won't meet the minimum requirements to download the new user interface when it launches on November 19, 2008. As a result, Microsoft is offering storage solutions.
If you own an Xbox 360 Core with less then 128MB of storage, you are eligible for either a FREE 512MB memory card or a refurbished 20GB HDD for $19.99; and if you own an Xbox 360 Arcade with less then 128MB of storage it appears, you may be eligible for a refurbished 20GB HDD + 3 months of Xbox Live for $29.99.
If you meet the criteria above, just go here and enter your system's serial number and ID.