Hi, although you do have 4Gb storage space this is not actually classed as a hard drive. It is purely flash storage. To be able to play old Xbox games and certain multiplayer games you will in fact have to buy a new hard drive for your Xbox Slim. There is a small cover which hides a Sata hard drive slot connector in the top of your Xbox. I think currently Microsoft are selling the hard drive including the caddy for around £130 ($200). I myself was duped into buying a 4Gb console only to end up buying a hard drive afterward.
Hope this helps
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