The 1.5GB HD Texture Pack is simply too big for the Xbox 360 Arcade models that pack a meager 256MB of on board storage. This will undoubtedly leave many Xbox 360 owners who got in at the $199 price point with last-gen graphics on their new copy of Battlefield 3. It also leaves owners of the 4GB Xbox 360 with very little wiggle room.
However, there are a couple of alternatives for these people. They could overpay for an official Xbox HDD, or use a USB memory card. In a somewhat recent update, Xbox 360 owners can now format up to 16GB of an external USB HDD for use with their Xbox 360.
Videos of the HD Texture Pack: