* Compatibility with 3rd party wireless controllers
* Compatibility with messenger pad
* Xbox Live Vision firmware upgrade, sharper image filtering
* Many more Vision Cam settings
* New screensaver settings - when away from Xbox 360, screensaver will play for optional time, before screen goes dark
* New Xbox Live Arcade blade - where you can download, play and learn about Xbox Live Arcade
* Brand new "web based adver-games" flash games which aren't downloaded, but are playable bite sized games, accessed via new Xbox Live Arcade Blade
* New Screensaver option in Themes and Gamer Pics option in Marketplace blade
* New functionality with Messenger, works with chatpad
* New XNA Game Launcher for those that have the program, new options
* New language, time and date settings
* New "advertising opportunities" in gameplay
* Xvid support
* New "favourites" option via Xbox Live Arcade, can rate according to preference
* IPTV Functionality - support for TiVo like PVR options. Will be able to record TV direct. Options include source by channel, director, actor and distributor
* Filter friends list, will be able to filter friends via games
* New clan support - will be able to launch clan games direct from dashboard, can "fold" friends into new clan category in friends list
* Better translations in settings and other options for Japanese, German and Spanish languages
* New quick option to delete via X Button in memory viewer.
* Option for having downloadable In-game content not inform when completed download
* Option for having video content not inform when completed download
* Faster settings for viewing unfinished video content downloads
* New option in Games tab - beta and others, will be launcher for MMO and multiplayer betas
* New option in Marketplace Games tab, search by letter, can be inputted via text pad or console
* Smarter game settings - you can be messaged via publishers about new in-game content for your games
* Picture in picture functionality for DVD Drive and some other updated settings
* Improved USB Keyboard settings
* Improved voice chat settings in game and from dashboard
* Faster response times to Redeem Code settings
* Option to play a Redeemed Code game straight after redeeming code
* Console will now recognise low Hard Drive space, will inform you immediately if can't download current item, will automatically download next available that is able.
* Increased space size for gamerpics and dashboard themes
* Themes can now be animated
* Themes may now have sound effects
* Better slideshow capabilitiesm new options added. New sound effects and integration with Hard Drive/ PC music capable.
* New estimated timer for downloads, informing how long download will expect to take