http://xbox360.ign.com/articles/834/834703p1.html
Yup. Starting in December, you will be able to download Xbox games to your 360. The games with the launch of the service include
Fable, Halo, Crimson Skies, and Psychonauts. So for people without hard copies of the games, sounds pretty good. Im bound to pick up Fable and Psychonauts, and Ninja Gaiden if they put it up. That 120 HDD isn't seeming so ridiculous now.....