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thats all I have. Installed one game to hard drive (Guitar Hero World Tour as the disc is scratched) leaves me with about 4gb free...
I'm going to be buying a bigger one when forza 3 comes out as it's potentially on two discs and the second disc needs to be installed to get the most out of the game from what I've read.
You will eventually need the 120gb one though if you want to install/downloads games + demos. Also heard that Microsoft might be launching a 500gb hard drive towards the end of the year as well - whether there's any truth in that though remains to be seen?!.