I got this update at for my xbox at 645am (est). Everything that can be saved on the 360 overpirced, drive can be saved on flash with the exception of music!
When installing, the 360 restarts. than installs continues for 3 mins. All the console settings went back to default! So far I have not noticed much of a change. I did notice my dvd drive no longer random opens when i shut the console down. So one improvment so far lol.
I don't have a transfer kit, so i can't install the 360 MU/HDD drivers. But acording to TUT, it wouldn't matter right now. Currantly there is no way to read the hidden files on the USB drive created by the 360.
Acording to some members of the modding world, those who have been reported for possible XBlive violations got the updates around 3am. Not just those who have been flagged my microsoft, but those who have been reported by other xblive users for bad behavor and the alike.