[jsedlak]

1. Yes. Use Microsoft.Xna.Framework.GamerServices.Guide.BeginS howStorageDeviceSelector to get a storage device. Then do MyStorageDevice.Create("My Game Title"); This returns a StorageContainer. You can then do File.Create(Path.Combine(MyStorageContainer.Path, "myfile.xml")); and from there it is smooth sailing.

2. It is very good until you hit the limit. Once you hit the limit and the device has to do a garbage collection you will notice a slow down. This happens a lot while I am developing. It is important that you coders clean up after every Texture2D, SoundEffect, etc object you have.