Microsoft has pushed the big green “GO” button on the latest Xbox 360 system update, which includes support for the new disc format, PayPal integration, and a new standby feature.

As previously announced, the new disc format includes an additional 1 GB of data space, effectively providing a 14-15% increase for developers, while the new auto-standby feature will switch your console to standby if it’s idle for an hour, reducing power consumption (and risks of overheating).

Unfortunately, due perhaps to PayPal’s limited visibility here in South Africa, the console’s new PayPal integration will remain unsupported here for the moment.

“We are rolling out the Xbox 360 System Update gradually to all Xbox LIVE users starting today and throughout the next couple weeks to ensure a high quality deployment,” writes Xbox go-to guy Major Nelson, over on his official blog.

“Just like any other update to our service, you will know you’ve received it when you turn on your Xbox 360 console, connect to Xbox LIVE and receive a notification to download the update. It’s important to note that it may take a few days to make its way around the globe. Thanks for your patience if you don’t get it right away!”

Discuss new Xbox 360 dashboard update in the forums