Xbox360 update

Get Updates for Your Xbox 360 Console
Getting the update free on Xbox LIVE is the best option because your console will be automatically updated as new system software is released.
To update your Xbox 360 console on Xbox LIVE, you must have an Xbox LIVE account with either a Gold or Silver membership, and a broadband Ethernet connection.
Copy the Update to a USB Flash Drive
If you don't have an Xbox LIVE account or have a slow Internet connection, using a USB flash drive is a good option.

Update using a USB flash drive:
Connect your USB flash drive to a USB port on your computer.
Click link to begin downloading the update folder. Save it as "$SystemUpdate_010_8955.zip" anywhere on your computer.
Unzip the File.
Copy the contents from the unzipped folder onto the root of your flash drive.
Safely remove the flash drive from your computer and plug it into a USB port on your Xbox 360 console. If your console is on, turn it off, then back on. The update program will start automatically.
www.xbox.com/en-US/support/systemuse/xbox360/console/systemupdates.htm