I was hoping for the 250 gb version... upgrading it will make this deal a wash. But its a very good deal for the 4gb.
If you buy a HDD case from eBay (bought one for $5 w/shipping) for the slim, you have 2 options. First, take the HDD from the old Xbox 360 and swap the case for the one you bought on eBay. No mods necessary. 2nd option would be to mod a HDD of your own and put in the case for the slim. Here's the Link[digiex.net] on how to do that. I happened to have the laptop drive necessary and so the cost for me was only $5.
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