Cant play gta 5 on old xbox 360 arcade using a 60gb hard drive i bought for it , can install the game but it keeps restarting when its loading story mode it keeps saying "problems with storage device please use another one

Is this the only game affected? Do all your other games play through? You can try to play the game under a different profile. Sometimes game saves get corrupted. That is why they were telling you to purge the hard drive. You can just delete the game saves for this game.

It could be that it is a pre-owned game, I have had problems with pre-owned games, and have bought a new game that has not been used. Also I have just recently bought that game and had to do and update to the xbox 360 when trying to play that game, you should have got a message to update the system when trying to start the game.

Check the return policy on your game and exchange it for another copy. If the problem persists your xbox drive may be failing.

the problem here is the type of xbox u have the xbox arcade has a 25-30gb hard drive if i am not mistaken while the premiuim holds 60gb your best option is to buy a 60gb hard drive transfer everything over to that one the buy a premiuim xbox for 20-30 more then a arcade for almost double the space

Some game are compatible with the new xbox 360. They are called backwards compatible and you do need to flash upgrade the OS on the new xbox 360 system.

You need to go to the xbox website and go to support and download the flash update then burn it to disk and put it on the xbox to update the software. Again not all old games are compatible with the new xbox system. If your buying used games like I do make sure it says bc next to the title before buying them.
Here is the link to the upgrade

http://www.xbox.com/en-US/games/backwardscompatibility.htm

It sounds like the DRM was married to your old motherboard. It would be the same reason that you can't play LIVE arcade games without being signed to XBOX LIVE. To fix it you need to have your XBOX 360 online and a computer that is also logged into the internet. Then go to http://www.xbox.com/drm and it will walk you through the rest of the process. It will take less than 5 minutes.

Although I cant find it anywhere I believe I read that those servers were going to be shut down. I never got into that game because I just couldn't justify another monthly subscription. I miss the good old days of Free online multiplayer. But I am a Gaming Dinosaur.

The Arcade model comes with no harddrive, no hdmi (for digital connection to an HDTV), and I beleive the controller is wired instead of wireless. If you are planning on just playing games then the arcade may be a good choice for you as it's cheaper but you may find yourself wanting a hard drive sooner than later. Without a hard drive you will not be able to purchase or rent movies and you will not be able to download game demos and Xbox Live Arcade games. To compensate Microsoft includes a disc with some of the greatest hits of XBox Live Arcade with the Arcade version. The Pro comes with a 20GB hard drive but still no HDMI. The Elite version has a 120GB hard drive and HDMI. For most people the Pro is the one to get. If you were to get the Arcade then purchase a hard drive later you will pay more than the price of the pro.

you need to recover your old gamertag through the xbox dashboard call 1-800-4myxbox for further assisitance

Yes, it either doesnt work, or the game your using isnt compatible period.

You need a hard drive.
Once youve got that you simply load up the emulator

Order direct form microsoft / download via xbox live or burn yourself

here is the link
http://www.xbox.com/en-US/games/backwardscompatibility.htm