k, crap i just wrote like a big paragraph reply and accidentally hit the back button and erased it all so... im pissed..
take that back it happen twice now, so im super pissed.. luckily i saved half of what i wrote.
to sum it all up.
get the arcade for $159.00 good ass deal, the DSi is the same price, lol.
the 256mb memory card is fine for game saves, most game saves take up 1-10mb of space. so just delete saves that u dont use anymore from old games.
the HDD is nice because you can download your own games and play them off the hdd to improve load times and frame rates, the only downside to a memory card is u cant fit DLC on it, but if u have an external hard drive (Anything with a usb port) you can use that as a storage device.
also since the arcade is the bare bones version, it doesn't even ship with a headset, so hopefully u have one.
- also i dont think ps3 headsets work on the 360, ps3 uses a custom mini usb type slot and 360 uses a standard 2.5mm audio jack, so u can just plug in any headset and it will work.