I have had my current Xbox for a few years now, and I have sent it in to Microsoft 4 times for repairs. I can tell that in a short time it will need repairs again, plus I only have 1 Gb of space left in my hard drive now. So I ask of you, what should I do with the money I have been saving to solve this problem:
 
Should I buy the 250 Gb hard drive  
  
or 
 
Should I just pay the money for a new 250Gb Xbox?  
 
Also is there any other way around buying a transfer cable I will probably only use once?

Man that is a tough one. On the one hand buying a new system just for the space sounds stupid but on the other hand Microsoft sells their's 360 drives for an insane price separately. If your sick of the noise your current Xbox makes and want it to be more secure I'd say go with the new one, you can probably find a holiday deal somewhere that is bundled with a couple games too. 

If the new system means less repairs, then that's a good thing.

Buy the new console.

if your old one is about to go anyway, just buy the new one. its great, i love mine. 

Cool, I will probably just get the new Xbox, I forgot that they had that bundle with Forza 3 and Alan Wake. 

Might as well buy a new console then. 360 HD prices are fucking insane, and since your console is busted anyway it sounds like the best option.

Also is there any other way around buying a transfer cable I will probably only use once? "

New Xbox.

New 360, easily. Sell your current 360 before it craps out and use that money to help buy your new slim.

New system. You'll be so happy that you did.

 @kurtdyoung:
My Xbox has broken twice and is now out of warranty, so when it peace's out a third time I'm getting a PS3. I guess it's your choice, but I just don't see how you could drop $400 when the same company's product has failed on you four times. Just doesn't make sense, but I guess it's up to you. 
 
As for the transfer cable, call Microsoft when you buy your new HDD or Xbox and they'll send you one for free. I got one sent to me to update NFL 2k5 rosters (I didn't tell them that) and I didn't even need a proof of purchase  or anything. It was like "Hey I need one of those cables," and about a week later it was there. The only time Microsoft has come through for me. You might need a serial number off the new HDD or Xbox though, as I've heard they do that.
 
But seriously, have you already ruled out a PS3? I would recommend at least looking into it, unless your friends have Xbox's. It just doesn't seem right to have to drop $400 on a new console because yours will inevitably break. 

Get a new Xbox.  If I were in the market I'd pick up the 250gb Kinect bundle.  I realy like my kinect (kids and wife adore it), but if you have no interest get the 250gb holiday bundle with Forza 3  and Alan Wake.

Xbox 360 Slim with 250Gb of course. Not only do you get wi-fi, more USB ports, more and better flash drives, but you'll get a much more silent xbox with a new cooling system that are ment to prevent RROD. And oh, did i mention that the xbox makes a cute sound when opening and closing the tray and turning the system itself on or off? It's also Kinect "Ready", meaning that the extra power-thingy you'll get with it, you can throw it to the sharks. It's also good looking, smaller and takes less power.

New Xbox, no contest. Your current 360 sounds like it could die at any moment or be back in repair at least a couple of more times.

get a new xbox 360. hard drives are stupidly expensive that you would pretty much be buying a xbox 360 without the xbox 360. it sounds like it might break again. 
 
microsoft stuff are expensive but they should lower the hard drive price to something cheaper because a hard drive for a computer is cheaper.

I'm running into the same problem, only I think mine is a little worse because I bought a 250GB hard-drive already around 6 months ago. I've sent my Xbox in 3 times already, and my current model could die any day now. About a month ago, I kept having problems with the power brick light turning red and then my 360 wouldn't work. I was ready to send it in, but then the 360 started working again and the problem went away. Pretty often my 360 won't read any discs, which is frustrating. I wanted to try to beat the Black Ops campaign last night, but my 360 wouldn't play it. Then my 360 gets really really loud a lot of the time, so I pretty much have to install every game. The thing is a mess. I want to just get a new one, but I know the old 250 gig hard drive isn't compatible, so it sounds like it'd be a waste of money to me.

" Buy the new console. "

Here's teh thing, a 250 gig HDD costs roughly 80-100 bucks still.  A new Slim costs 300 bucks.  So there's a 200 dollar difference there.  Now given that your xbox system traded into Gamestop could get around 60-70 dollars credit, for an extra 130 dollars you will not only have the HD space you need, but a system that's smaller and wont red ring.  It's just that easy.

I'm in roughly the same situation, and I'm going to get a slim.