Thanks.. I probably wouldn't be going down the mod chip route but I have seen games like Ninja Gaiden Black, PGR, Halo, Halo 2, Forza Motorsport and others all relatively cheap (around £10) and in GAME there is a Buy One Get One Free on some games (which I think Includes Ninja Gaiden Black) and 3 for 2 offers on many others.
Would it be worth paying £79.99 for a completely new XBOX since they don't have any preowned in the store or should I try to find one somewhere.. maybe Xtra-Vision? I'm thinking about stocking up on some games and then I can play them over the next few months/year until I'm ready to get something next-gen..
Thanks again Teppo!