I see some threads talking connecting a memory unit to pc via usb cable. So is it possible to use a usb drive as a memory unit on xbox 360?

I think you can put music on it and thats it, im not completely sure though.

you can but it is music only

yeah dude u can only have music, and videos and stuff... you cant save games

so its kinda pointless

Sort of. It's possible to transfer via USB, but it requires a USB capable PC by both the 360s you're transferring to/from.

Your stock 360 mem unit can only be used to transfer music/pics/vids/skins, however for about 40 USD, you can get one of these babies. Neat little thing you sandwich between your console & your HDD. You go 360-Your PC-Thumbdrive-Their PC-360. & it's cheaper than a mem-unit to boot!. It's one of the reasons internal HDDs suck.

Hope that helps.