How to install Xbox 360 Update:
*WARNING: DO NOT INSERT USB INTO COMPUTER
1.) Turn off Xbox 360.
2.) Insert USB flash drive into your Xbox 360 console and Power on.
3.) You will be automatically prompted to update with a USB stick, power down the Xbox 360 and power it on again. You should be ask to update before the Xbox 360 boots to the dashboard.
4.) Once the update is complete, your Xbox 360 will restart then boot up to the new dashboard.