X-Box Hard drive size

[JB007Rules]

I have heard from several people that you cannot put more than the 137 gig hard drive into the x-box, and I have heard from several people that you can. Now... I have a 120 gig in their right now, and the only reason i didn't put the 250 gig one is was b/c i thought it wouldn't work, however if someone could confirm that they got it working, and if so, what programs to get it working(if any) b/c i can get 250 gig hard drives on sale right now for only 160 dollars plus 7.25% tax... that is Western Digital 8 meg catche... so ya... good deal... b/c my 120 gig right now only has like 3 or 4 gigs free

Thanx in advance