I’ve had an Xbox 360 Pro w/60GB hdd for over a year now and it’s been treating me great; no RRoD yet thankfully! I typically have 4-5 games installed on the hdd at any one time and rest is for Rock Band DLC and XBL Arcade games.
Having said that, I could do with even more hard drive space so I would definitely recommend you getting a new Xbox 360 Elite and not an Arcade nor a Refurbished system.
Amazon actually has a decent deal right now for the Xbox 360 Elite as seen below.
Xbox 360 Elite Winter 2009 Lego Batman / Pure Bundle - $293.99 w/Free Shipping + $50 Amazon.com Gift Card
[LIST]
[]Includes LEGO Batman: The Videogame and PURE
[] 120GB hard drive
[] Sleek black console with matching wireless controller and headset
[] HD ready - with an HDMI port (HDMI cable sold separately)
[*] Ethernet cable
[/LIST]
As for hooking the 360 to your computer monitor via VGA, I use this for my personal setup (standard 19" Acer LCD, works great!):
Xbox 360 VGA HD AV Cable - $32.49 w/Free Shipping
Although it might seem pricey, I would stick with the Microsoft brand so that you’ll experience no compatibility issues.
Next, if you want to use your headphones, you’ll need one of these (which attaches onto a plug that comes with the VGA cable, as seen here):
3.5mm Stereo Coupler F/F - $5.02
To play online, you’ll need an Xbox Live Subscription:
12-Month Xbox 360 Live Subscription Gold Card - $39.99 w/Free Shipping
And don’t forget your 360 copy of Street Fighter 4 - $27.99 w/Free Shipping!
In summary, here are all the essential items you need to be playing SF4 on Xbox Live with your current computer monitor.
Xbox 360 Elite Winter 2009 Lego Batman / Pure Bundle - $293.99 w/Free Shipping + $50 Amazon.com Gift Card
Xbox 360 VGA HD AV Cable - $32.49 w/Free Shipping
3.5mm Stereo Coupler F/F - $5.02
12-Month Xbox 360 Live Subscription Gold Card - $39.99 w/Free Shipping
Street Fighter 4 - $27.99 w/Free Shipping
Total Price: $293.99 + $32.49 + $5.02 + $39.99 + $27.99 = $399.48 w/Free Shipping + $50 Amazon GC
Subtracting the $50GC, you are essentially paying only $350 for everything!
To be honest, if you shopped around for a cheaper priced 12-Month XBL Subscription and cheaper copy of SF4 (i.e - Used), you can probably save another $10-20.
But considering the convenience of getting all this in one go validates the purchase more.
Hoped my post gave you an idea of all the costs involved to make your decision.
If you have any more questions, feel free to ask!
Good luck!