Xbox 360 has CONFIRMED that the following News is true:

The release will be before the end of this year. “News has leaked out that the Harmonix Rock Band 2 game told gamers to “Check out the New XBox Experience coming in November!”” as said on the site. 

But for those of you who do not have Xbox live don’t dispair the dashboard update will be on any game that comes out after the update. He has confirmed that there will be Harddrive installs but you will still need the game disc to prevent piracy. New estitics such as a new 3D look to the dashboard, the new guide will be a mini version of the current dashboard just a more simpliar. And now you can -in-game- you can change your 360 settings. So you no longer have to exit a game to change the settings of your 360. You now have Avatars, you can invite freinds to party up before games. So you will bassically be parting up in the dashboard and then the host can launch the game, given that all the party members have the game. Multi-person private chat which was one of the big sellers. The new arcade games which include MANY people like a mini TV show. You can also share videos, pictures. 

The update seems to be big. Lets just hope that HOME is going to be released this year with 2.50. 

Source: http://www.current.com.au/2008/09/26/article/XPNMJPZSEI.html