A. The easiest way to update your Xbox 360 is through the Xbox Live service, which automatically downloads and installs the update. You can also download the update manually and copy it to a USB device or burn it to a CD or DVD.
Go to this site for the system update. For the Fall 2010 update, it links to this page, where you can download of the system update (95MB). It also provides instructions for performing the update with your downloaded file.
Now go enjoy Kinect, ESPN, and the ability to search Netflix .