Joined: 7-December 03
Member No.: 79906
Xbox Version: v1.1
360 version: unknown
I believe the only way to get around the 8GB minimum would be to have a custom partition table (not completely sure on this, but I think it should work), but you'd need a modchip or tsop flash to do that.
Otherwise, a dual HDD mod is probably the best way to go, especially if you want Live.