Ok first of all I dont have a 360 yet XD. So all my info is based on what I have research but InshAllah you will find it accurate. I have read and infact some people have also advised to get the HDD enclosure for sata drives as it is much cheaper and comes in handy if you have spare drives laying around. So in short yet it is possible, that is if the console is Jtagged and drive needs to be formatted in Fat32. It pretty much works as a external portable drive. About the usb ports, I think 2 on front 3 on back, but only use the back ports for connecting drives, another thing I read.I was going over that issue aswell last night about connecting headphones to the console, I'm in the same situation as you as I have a spare monitor. Anyway it IS possible might have to invest in some connectors, zyada kharcha to nahi hoga, but I have heard that doing so reduces the overall quality of the sound. Otherwise zyada kharcha kar k amplifier etc lena pareyga. Hope this helps