yeah, when I bought my Xbox with the 20 GB hard disk, I only had free 12 GB... But dont forget that when you bought a xbox, it brings a bunch of demos and other stuff... Ive deleted a lot of them.
Now, i have free 9,6 GB. In the hard disk, I have a lot of demos (Resi 5, RS: Vegas, Nuts & Bolts, and otherg arcade games), 1,5 GB occupied by Oblivion (expansions, saves, etc..), some aplications...
Of course I want a bigger hard disk, but for now, Im satisfied with it...