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You can connect two USB storage devices to your console at once.
STEP 1 - Install the latest software to your Xbox 360 console To configure and use a USB flash drive as a USB memory unit, your Xbox 360 console MUST have the Spring 2010 or later update.
EDIT: This issue appears to be resolved again (for now...)Recently, we've received multiple reports of leaderboards not tracking/updating for many older Xbox 360 games. If anyone else is having this issue, or can confirm issues with leaderboard tracking on other Xbox 360 games, please post here and let us know.
Here is the page where I found out how to make it work. If you have a writable CD a thumb drive, use the thumb drive, because it's much easier.
Once you have burned your CD or copied the files to your thumb drive, make sure your Xbox 360 is turned off, then put the CD in the Xbox 360's disc tray, or put the thumb drive into a USB port on the console, then turn the 360 on.
Notice: Installation of Grand Theft Auto V requires a 16GB flash drive (with 8GB free space) as stated by the game manufacturer.
Since this outage is having a negative impact on their games, they should have a vested interest in resolving this. None, except to talk to the developers/publishers for these titles which is their standard response, because the Customer Support can't triage game issues when it's obvious to us that it's not a specific game issue.
Updated list gamed affected by leaderboards or XP not saving on games Grand Theft Auto IVGears of War Saints Row GRAWF. Yeah i hope someone gets the bottom of these issues and fixes these.