Do need help with this. ASAP!!
Can't read the update from your storage device. Please reinsert it to continue the update.
If the problem persists, visit Microsoft Xbox Support | Xbox 360, Xbox LIVE, Kinect, and Games for Windows - Xbo*****m.
Status Code: 335A-351F-B680-0F00-C000-0034
Whenever I reinsert my USB flash drive it gives the same error. Whenever I restart my xbox it doesn't go to my dashboard, it's just stuck at the update. 
@Disturbed HALP!!! 
Went on the xbox website and that error says to contact them :\
I remember seeing something a while back, if you get update errors.. go and clean out the cache and something else on the xbox to reset it
Your xbox doesnt have a harddrive? You use your usb as a storage device? Well if the website says contact them the best thing to do would be to contact them.
try these
configure the flash drive ( if u havent already )
delete everything on it
buy a new 1 for 10$ :/