TheSpecialist released the update of HDDHackr (download v0.90) many of you were probably waiting for. With the release of an official 120GB drive by Microsoft you can now use this tool to make your own 120GB Xbox 360 HDD using a Western Digital BEVS-LAT drive (that's a cheap SATA 2.5" PC/laptop drive):

Attached is the latest version of the hddhackr. It works with the new 120 gb signature. However, this current version can not dump the hddss.bin file automatically from that drive, you'll have to manually dump sectors 16-22 with a tool like winhex and save them as 'hddss.bin'. After that, continue as normal with the hddhackr and everything will be fine.

Also, I'd like to stress that there are 2 versions of the WD BEVS drive out there: the 'RST' and the 'LAT' version. This tool currently ONLY supports the 'LAT' version ! You can find on the sticker of the HDD which version it is. I'll hope to be able to support the RST version of the drive in a future version of this tool.

This is a good hack and saves almost $100, but I would not bother until after the spring dashboard update. Microsoft can make these drives unusable really fast with a clever update that blocks usage these "hacked" drives. Wait a few weeks...