There are currently three versions of the Xbox 360 available on the market. They have amanufacturer's suggested retail prices of $199 for the "Arcade" version, $299 for the "Premium" version, and $399 for the "Elite" version. I am NOT going to get into which consoles support HDMI, or which consoles have which chip. This guide is meant for the layman, who is completely new to the world of the Xbox.

Understand that the basic mechanics of the Xbox itself is identical on all three versions. All three versions will play any Xbox 360 game.

The main difference in the three versions is the amount of storage. The "Arcade" or earlier "Core" units originally came with either no memory storage, a 64 MB memory card, a 512 MB memory card, 256 MB of memory built-in, or the most recent 512 MB of memory built in. Either way, you're not talking about much memory. The "Arcade" or earlier "Core" units are made for casual gamers in mind. They're for people who don't intend on playing online, or downloading demos, or who play simple games with small game saves (and not large games like role playing games). Also, these units can not play any of the couple hundred original Xbox games that are backwards compatible. That requires a hard drive of some sort. There are also ways to get the software updates needed to play original Xbox games, but connecting to LIVE and downloading them is how 99% of it is done.

My opinion: Unless you're buying a replacement console, or really are doing just the most very basic form of videogaming, I would steer clear of the "Arcade" units. They're not bad, I just think you'll be buying upgrades almost immediately.

The "Premium" or earlier "Pro" units came with a 20 GB hard disc drive (HDD), or a newer 60 GB HDD. They come with ethernet cords for connecting to a router, modem, or an internet-wired house jack. They also come with a headset for online play, and a free month of online play, called "Xbox LIVE Gold Membership." More about that in a second. Either HDD offers plenty of space for practically unlimited game saves (marking your spot in a game so you can continue your game later from the same point). The 60 GB simply offers you more room to store downloaded demos, videos, photos or music.

My opinion: This is the Xbox 360 I would recommend for the majority of people, even entry level videogamers.

The "Elite" comes in black, where the other consoles are white. It has a 120 GB HDD, and comes with everything in the "Premium" unit, plus an HDMI cable.

My opinion: Get it only if you are gonna die without that extra storage space, or if you gotta have a black 360.

Xbox LIVE: And Xbox LIVE Silver Membership is free to anyone. You can have multiple Silver accounts on one Xbox. Xbox LIVE Gold Membership costs $49.99 per year (about four bucks a month). You must have Gold if you want to play online multiplayer games, or if you want to utilize the Netflix service (Netflix has its own rules and fees). It is really nice to sit down and watch a movie through Netflix.

Warranty: Yes, you've probably heard of the 3RRoD or "three red rings of death." There is a ring around the power button that is split into four quadrants. Its normal function is to let you know which controllers are connected, but in the event of a hardware failure, they go from green to red, and any number of lights can light up. There is a hardware design problem that frequently causes an error code of three red lights. On the good side, the Xbox 360 is warrantied against defects for one full year, with a warranty of three years on the specific red-light issue. Microsoft is also constantly upgrading the chipset to minimize the likelihood of a problem.

My suggestions: Get some 1/2" self-adhesive rubber feet and put them under your 360 to provide additional clearance for air. Although the unit is made to sit horizontally or vertically, I recommend that you NEVER place it vertically. Keep it off of carpet or material. And even then, if you think the console is going to get a lot of use, purchase an extended warranty through Microsoft ($49 or $59, I forget, for two additional years).

Maybe you've heard about Natal, the new motion sensing/voice and facial recognition program on the 360. This has just been announced, and is at least a year away from being availble or having games to support it. Don't wait for it. It will nto be built in to the box, but is a separate unit, and you will be able to purcahse it separately when the time comes.