Board Thread:Oblivion/@comment-69.156.23.164-20131005000746/@comment-46.117.200.110-20131005235605

yup, go to Settings -> System -> Storage -> Select you USB and press Y

Configure it to use Xbox storage system and then it'll be usable just like any other storage device(can store installs, DLC, XBLA and so on..)

Hope that helps

-Talool1