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Getting the premium package is the only way to go. It includes the headset, component cables, wireless controller, HD. There is no question about it, get the premium. The HD will just make your life a lot easier, and as others have said, you need it for XBL. I never thought I would need one either, but once you have it, it's totally worth it.
Go grab a premium 360, and Gears of War. Attach to an HDTV with Surround Sound, and enjoy the experience. You won't regret it!!
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"That's why you're the judge and I'm the law-talking guy."
Lionel Hutz
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