I'm looking to buy a Xbox 360 Slim 250 GB. So far, I've read into the X360 Xkey and Wasabi mods. Both seem great, however instead playing from an external drive, I'd like to play games from the Xbox's internal 250 GB drive.

My question, is there a mod to allow for games to be played from the 250 GB hard drive and also have the ablility to play on Xbox Live?

I'm open to suggestions as I have experience in modding, 1) Xbox Gen.1 - modded the console to allow for games to be played from the internal hard drive, 2) Original Xbox 360 - flashed the DVD drive. Cool thing is that I never was banned from Xbox Live.

Thanks for the help in advance.

I don't think there is any Xbox Live safe way for you to do what you're asking. The Xbox has to think the game is in the DVD drive, which is where xkey and wasabi come in as they emulate the game from a hard drive.

Mods + Xbox LIVE = does not exist