Unfortunately the rumor about the lack of a Hard Drive is still floating.
To me, the reason why I bought the box in the first place was for this feature.
MS states that due to the lack of developer use of the hardware, they had to trim some areas for cost savings.
Well, certain developers are actually using the featue in X-box live D/L and others are just starting to use the Drive for buffering and future gaming prospects. Hopefully MS will see this.
IMO, I like the feature and it will be a driving factor on who will get my money in the console race.