I thought that there was some magic firmware or something on the 360's hard-drive which identified it as genuine & prevented you from using a 3rd-party one. Is that not the case?
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If it's any help, when I wanted to go from a 20 to a 120, I purchased a brand new one from Argos for £90, transferred my stuff on, then sold the 20gHD for about £30 and the transfer kit for £20, via evil-bay.
Net cost to me for a brand new 120gHD was about £40 :-)Comment
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Thing is now the 60's go for £30, 20's only about £15.
(if you can find someone who will buy it)Comment
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