As we told you previously, the New Xbox experience (NXE) will require 128MB of storage and more if you want to take advantage of the Netflix streaming option. The update will be a problem for those who are out of storage or don’t have enough storage on their current flash card or hard drive.

While Microsoft has started to address the problem by offering low-cost, 20GB hard drive upgrades, many owners don’t want to simply take the time to order the drive and wait for it to arrive. Microsoft is attempting to address this issue with the announcement of a new Xbox Live Starter Pack which will be released this weekend, according to our sources.

The Xbox Live Starter Pack will include a 60GB hard drive, 3 months of Gold membership to Xbox Live, a new headset, and an Ethernet cable. This is pretty much everything one needs to get on to Xbox Live and take advantage of it. The suggested retail price will be $99, which is the same price as the difference between the Arcade and Pro versions of the system.

As an upgrade for those that already have a 20GB hard drive, some many be disappointed; the Xbox Live Starter Pack is not really targeting upgrade and does not include the transfer cable and software that is included with the 120GB hard drive upgrade option that Microsoft is also still selling.

This means that if you choose to purchase the Xbox Live Starter Pack, you will either have to know someone who already has the transfer cable and software from their 120GB hard drive upgrade and are willing to let you use it, or the other option will be to purchase a memory card and copy all of your data over to the memory card and then onto your new hard drive.

This is a good move by Microsoft to start getting the 60GB hard drives out, so those who purchased or receive a Xbox 360 Arcade system this holiday season will be able to easily upgrade to the 60GB hard drive with some of that holiday cash that they also might receive. The addition of the 3 months of Gold membership to Xbox Live, a new headset, and an Ethernet cable really are just value-adds that make the purchase more attractive, but add little to the overall package.

We think it would have been a good idea for Microsoft to offer the transfer cable and software as an option, so that those who have 20GB systems can purchase this package and easily upgrade to the 60GB hard drive, as well, without having to jump through hoops.

We understand where Microsoft is targeting this package, but those who have the 20GB hard drive and don’t want to spend the money for the 120GB hard drive option will be drawn to this kit only to find that they will be on their own to figure out how to upgrade from their current drive.

You can place a pre-order here