Data Transfer Kit?

I am currently planning to transfer all the data from my 20gb HDD to a brand new 120gb HDD with a data transfer kit. Is there a way to back up all my files and game saves in case something goes wrong, and is it even a smart idea to transfer data? Thanks.

If you really must back up your data, you can do it using USB flash drives. One thing about transfering to a new hard drive is that after you transfer your data, if you want to play XBL arcade games and use certain DLC and other content offline, you must first transfer the content licences to the new console. You can use this guide once you are done transfering to the new Xbox 360.

I would copy your saves to a USB drive. The transfer kit will completely wipe the old drive, but I've never had an issue myself with there being any kind of error :) It was relatively quick and simple. If your going to a new Xbox as well, you'll need to go to the Xbox website and transfer your licenses (Add-on's, Arcade games, etc.) so that you can use them while offline on the new Xbox.

Can you transfer avatar clothing as well? Or will you have to repurchase all off them from the marketplace?