Word on the street is that the Jasper Xbox 360s (consoles with a smaller 65nm chipset) are finally hitting retail shelves and along with the benefits of running cooler, requiring less power, and being generally more "stable", we're finding out that Jaspers may also have additional storage capabilities.
According to a Xbox-Scene who recently got their mitts on a Jasper 360, the on board flash chip storage has been increased from 12MB to a whopping 256MB. If true, the additional built-in storage would allow Microsoft to pre-install the New Xbox Experience without requiring a memory card or HDD. We're also told that 214MB of the on board storage can be used for game saves and XBLA storage. Nice!