XBOX 360 system update fails to download/install citing memory space even after the memory...

Often in the older 360 consoles with the built in memory unit, this issue will occur.

When the memory unit fails, the Xbox sees that there's an update available since it can't see the update that was on the storage device. When the Xbox tries to download/install the update, the update can't install because of the failed storage device.

Does your Xbox 360 have the memory unit and/or the hard drive?

When the memory units fail in those Xbox 360 consoles, you can't delete or install anything and you'll often get prompted to install a system update which won't install either.

If you can try and exchange the 360 with gamestop that would be best and get a 360 without a memory unit. The systems without a memory unit will require an internal hard drive.

When the memory units fail in those Xbox 360 consoles, you can't delete or install anything and you'll often get prompted to install a system update which won't install either.

That's what I'm leaning towards as well as the root cause of the problem - the memory card is failing.

If you have an Xbox 360 with a 4GB Memory unit, what usually happens is that 4GB MU Fails losing the system update. And it tries to download the update but can't because the MU does not work any longer.

There hasn't been an update for the 360 in quite some time and its not an update that was pushed out to kill your Xbox. The 360 console with the 4GB MU will just fail after a period of time.

This will occur when the Xbox 360 consoles that have the 4 GB Memory Unit and the Memory Unit fails. When it fails it doesn't see the last system update that was installed and gives you a message that one is available.

You can try and see if you can use a USB thumbdrive to take or install the system update but it doesn't usually work.

Basically, the 360 is done. If you want to get another, get one without the 4GB MU. And one that you can add an internal hard drive.