Originally Posted by PJ_Rage
I don't know how you can be so certain. Running anything real time from a USB flash drive, even the best ones, is generally not a good idea.
Because a halfway decent USB stick completely destroys any mechanical HDD on access times, which is the typical bottleneck. I install games to USB sticks all the time, even games with texture streaming like gears 3. Even makes the texture pop-in you get from the DVD go away.
I'm sure you're still correct though - the bar MS sets probably isn't high enough to guarantee a decent experience. Oh well, sucks for people without a HDD. I figured at least the 4GB slim people would be in the clear.