What is an Xbox 360 Arcade Console?

[Pyreforge]

I know this game doesnt have a hard drive, but can this console still run all normal xbox 360 games and run xbox live?

 

[FireZ]

It will run all 360 games.

Some games though you won't be able to save your progress.

HD's can be found pretty cheap.

 

[Pyreforge]

I'll be able to play Modern Warfare 2 Online?

 

[MegaMatt]

google is your friend.
the arcade is just a normal 360 without a hard drive and other stuff. it can do anything that a normal 360 can do without the hardware that isn't included.