You can either have your Xbox 360 standing vertically or horizontally, just don't move the system with a DVD inside (common sense).
This controller is a lot better than the first Xbox controller, formly known as the "DUKE". This controller is a lot smaller and fits most hands very comfortably. You can also power on the system by pressing the middle button on the controller, which is a very nice touch.
This controller can also be bought wirelessly, or you can buy it with a cord. If some people don't like to charge the unit, you can also go with the wired version, which is what I prefer.
If you get the core system everything is upgradable, which is nice, incase you can't afford the premium at the time. You can buy this 20 gigabyte hard drive (around 13GB), which slides into the top of the 360.
This is the Xbox 360's Xbox Live headset, which comes with the premium version. You can also use your own headset, off course one that fits into the port.
You can use this network adapter for connecting to a computer that is not close by to you. This comes in handy when playing online, or connecting to your PC. You can transfer pictures, videos and music via an XP based PC.
This is the Xbox 360 media remote, you can use this remote for so many things. You can turn on your console with this remote, watch DVDs with this remote, shuffle through media center etc.