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I am thinking about buying an xbox 360, and i saw the arcade. First--does it work for live, Second-- if i bought Halo 3 as my ONLY game, would i have enough space, and would it work on Xbox Live???
Yes, the arcad is the cheapest version, and it comes with a 20 GB hard drive. However, it has 6 free arcade games already installed, which take up like a third of the hard drive alone. But its OK. Halo 3 only takes up abot .5 GB, even less. And yes, the 360 Arcade does have online capabilities.
Arcade games do cost money to get onto your 360. You buy it with points which cost real money. You usually get like 5-7 arcade games that come with the 360 in the cd-rom. You just need "silver" membership to browse these games. To actually play online with any game such as one of these arcades or Halo you need "gold" membership which cost 5 bucks a month and you get one month free as a trial. If you're asking about if it would be "enough space" to save a saved game and such it, most likely you would be able to if it's your first game.