So when it comes to making back up saves for my games. Can I transfer the saves to my usb and transfer them to my PC and back on my Xbox 360(or a new Xbox 360)? What process do I need to follow to make backup saves for my games? My 360 recently froze on me and I'm concerned that it might red ring on me.
You can transfer files from the Xbox360 to your USB, then PC and back providing they aren't locked.. (No idea what happens if you do it to a new console, though) --- http://www.backloggery.com/trashknight
Within the terms of the XBL ToU, you can use a USB storage device as an MU, however, most methods of transferring files from a USB device to a PC are not allowed.
I don't know if the ToU allows you to copy the container files (hidden files, one for used capacity and one for free capacity) used on a device configured as an MU to your computer or not, but, afaik, even if you did, you would still only be able to use the specific device they are from. --- R.I.P. Eve English (Feb. 12, 1968 - Oct. 13, 2010) Momma Eve, you will be missed.