Ok seeing that the only good thing about the ps3 is the BR, The online sucks ass getting so many time outs thats its nothing even worth trying to play online. So now iam going back to the 360 never had any problems at all playing online it was all ways solid. So when i had a 360 i had the 120 gb hd and still have the HD cables, saves etc.Now if i buy the cheap arcade one, Will my 120 gb with all my stuff on it work fine? and does the arcade on have HD outputs?
You'll be fine. I picked up an arcade bundle, and did what you are thinking about doing when my xbox died. They are essentially the same inside.
If I wasn't happy with it I wouldn't have bought a second one Besides, I bought my first one second hand and knew there was a possibility that it wouldn't last forever but I got a great deal on it, and couldn't pass it up