Just seen this deal, ok its expensive. But as a starting out XBOX kit its very good value. (£50 extra if you want the 250GB XBOX instead)
4GB XBOX 360, with 1 wireless controller
Budget Wired Controller
Forza Motorsport 3
Gears of War 2
Not sure what cash in value on the games are, but maybe a cheaper way of buying the newer 360 and Kinect?