Problems Arise with 4GB XBox 360 and Halo:Reach
If you are one of those who bought a 4GB XBox 360 and were hoping that you will be able to play all the features in Halo: Reach, then you’re definitely in for one big surprise.
“One or more players do not have a certified Xbox 360 hard drive attached to their Xbox 360 console. Some multiplayer aspects of Halo: Reach requires an Xbox 360 certified hard drive,” is a statement found in the FAQ page of the support website for XBox.
Yes, one cannot play co-op missions, which will allow playing the game through levels with online friends, without a hard drive.
The 4GB version of the game console costs around 199 USD. A separate XBox hard drive costs 129 USD. You do the math and you end up shelling out 328 USD (tax not included).
Now, an XBox 360 console with built-in 250 GB hard drive costs 299 USD (also tax not included).
It has been reported though that Microsoft is trying to fix the issue.