Xbox 360 system will not reade any kind of storage format, like hard drive or flash drive in the usb slot.

Try formatting the new hard drive.


To format a storage device

1. Start your Xbox 360 console without a disc in the tray.
2. Go to the Settings hub, and choose System.
3. Select Storage.
4. Highlight the storage device that you want to format, and then press the Y button on your controller.

You can use a USB flash drive as an Xbox 360 storage device and store up to 32 gigabytes (GB) of content.

Make sure the flash drive will work on a normal computer. If it does try a different port on the xbox. If it works on the computer and not the xbox you might have to format the flash drive to work with the xbox Go here USB flash drive support for Xbox 360 or How to Configure any USB Flash Drive as Storage on Xbox 360

Make sure the flash drive will work on a normal computer. If it does try a different port on the xbox. If it works on the computer and not the xbox you might have to format the flash drive to work with the xbox Go here USB flash drive support for Xbox 360 or USB flash drive support for Xbox 360

I got this from the Xbox support site for your error code.

Error Code xxxx-xxxx-xxxx-xxxx-8007-045D
A storage device (such as a memory unit or hard drive) was not found during the software update. Follow these steps:

1. Turn off your console.
2. Remove all console storage devices, including any USB flash drives, external hard drives or the internal hard drive on the Xbox 360 E console or Xbox 360 S console. Learn how to remove the hard drive.
3. Add your primary storage device, for example, the hard drive.
4. Turn on the console
5. Try updating the console again.

Here's the website if you wish to peruse it further.
http://support.xbox.com/en-US/xbox-360/system/software-update-errors

Post back how it works out!
http://support.xbox.com/en-US/xbox-360/system/software-update-errors

Yes you can the easiest way is to plug a usb flash drive "at least 1GB" into your xbox 360 find it on settings tab >Storage... format it if it isn't already when it is formated remove from xbox 360 plug both usb flash drive and camera into pc/laptop then copy photos from camera onto usb flash drive. after your finished remove usb flash drive put it back into xbox 360 and you can move them to or from any formatted storage device including you hard drive

In this process your hard drive will be formatted, so back up all files to another hard drive, laptop, or be prepared to lose everything on your hard drive. After you have backed everything up, plug your hard drive into an Xbox 360 then go 'My Xbox/System Settings/Memory.Select 'USB Storage Device/Configure Now' then accept the warning.After the formatting is complete a Performance Warning box will appear, click 'OK.' Now in the 'Storage Devices' screen you should see a new option 'Memory Unit.' This shows that the formatting was successful. Disconnect your hard drive, then connect it to your laptop, load on some media (makes sure the file types are compatible), then reconnect it to your Xbox 360. Your selected media should not appear under 'Portable Device' in the Video/Music/Picture Library.

You see the following error message when you try to sign in to Xbox Live:

Sorry, something's wrong with your Microsoft account. Go to https://account.live.com for help.
Status code 8015D003

This may mean that there's a problem with your Xbox profile.


Solutions

To resolve this issue, try the following solutions.
Solution 1: Verify your Microsoft account security information

1. Go to Microsoft account. If you forgot your password or it doesn't work, reset your password.)
2. Click Edit security info.
3. Verify your security information. For example, verify the Phone number, Alternate email address, and Security question information.
4. Sign out of your Microsoft account, and then sign in again.
5. Try to sign in to Xbox Live again.

Solution 2: Clear the system cache

1. Press the Guide button on your controller.
2. Go to settings and select System Settings.
3. Select Storage or Memory.
4. Highlight any storage device, and then press Y on your controller. (It doesn't matter which storage device you select; the cache will be cleared for all storage devices.)
5. Select Clear System Cache.
   Note Repeat this step three times.
6. When you are prompted to confirm storage device maintenance, select Yes.
7. Repeat steps 4-6 three times to fully clear the cache.

Solution 3: Move and then redownload your Xbox Live profile
Note If you want to use a USB flash drive or a USB hard drive to complete these steps, you must format the USB flash drive or USB hard drive for Xbox storage. (See USB flash drive support for Xbox 360.)

1. Move your profile to a USB flash drive or USB hard drive. To do this, follow these steps:
   1. Plug the USB drive into your console.
   2. From the Dashboard, go to settings and select Storage.
   3. Select All Devices.
   4. Select Profiles, and then select your gamer profile.
   5. Select Move.
   6. Select the Memory Unit that you want to move your profile to.
      Note A Memory Unit can be a USB flash drive, a USB hard drive, or the Xbox 360 Hard Drive. Be sure that you move the profile to a USB flash drive or a USB hard drive.
   7. Remove the Memory Unit from your console.
2. Redownload your profile. For details, see Download, move, or delete your Xbox Live profile.

The Xbox 360 can only recognize drives up to 16GB as noted on their website, I myself have tried a 32GB flash drive to test the limitations and it was not recognized. At this time it seems as though microsoft is limiting their external storage to 16GB.
http://support.xbox.com/en-us/Pages/xbox-360/how-to/usb-flash-drive.aspx

If you already have the Spring 2010 Dash Update for the Xbox 360 console this can be configured( go to Setting up your Xbox 360 with your USB Flash Drive).
The update allows you to configure a flash drive to hold up to 16GB of Xbox 360 games, gamertags, videos, and other information. You can connect two USB storage devices to your console at once.

• If you don't have it yet, you need to download the update:

To install the update through Xbox LIVE
1. On your Xbox 360 console, sign in to Xbox LIVE.
2. Select Yes, updated now when prompted.
3. When you see the new Dashboard, you're done.

Setting up your Xbox 360 with your USB Flash Drive: 1. Plug the USB flash drive to the Xbox 360 console.
2. On your console, go to My Xbox, and then select System Settings.
3. Select Memory.
4. On the Storage Devices screen, select USB Storage Device.
For detailed instructions you can visit: http://kb.sandisk.com/app/answers/detail/a_id/2777