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It appears from the benchmarks that I have been seeing... games that are NOT optimized for the 360 (multiplatform games mostly), benefit GREATLY from the installations...

However, cames that have already been optimized for the 360 (usually console exclusives, such as Halo 3 and Gears of War), actually take longer to load from the hard drive. I cant remember what website I read it on, but I think I recall Gears of War 2 and Fable 2 load times getting doubled when installed.
 
Eh, I installed L4D then later GoW2.

Didn't notice any real difference from either, EXCEPT. The system was much, MUCH quieter. And Im guessing would lead to alot less "Read disc errors" that have plagued many solid 360 titles.

L4D used up 5GB while GoW2 used 6.8GB. On a 20GB hd with already about 11GB used up...doesn't leave all too much left.
 
Installing games on the HDD is kind of a waste of space. Lets say you're playing GoW2 MP and you have it installed but nobody else does. It's going to load at the same time as everyone else because they arent going to let you load up before everyone and get a headstart. I guess the installs can only be useful for single player games like Devil May Cry 4.
 
I know one thing - the ability to install is gonna help the loading times of Lost Odyssey disc 4 immensely. Without it, waiting for one enemy encounter to load up requires a ton of patience.
 
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