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The new update for XBOX 360 hits Gold and Silver members today. Users connecting to the Live Service will be forced to download the update which promises little new benefits in the short term. Of the benefits players will be able to pay for MS Points, Subscriptions and On Demand games with their PayPal accounts.

One major benefit is a change in the way Microsoft handles copy protects on gaming dvd’s. This allows an additional 1GB of space for developers to utilize. The down side is a very small number of generation one 360’s will need to be replaced as their hardware does not support the mode. However Microsoft will replace these units for free with a new 360 Slim with 250gb HDD. So its not all bad.

As for me… the download still continues.. The speed is not great, so if your wanting to use your 360 tonight – start the patch now.