Look, I have to warn you guys. These things have a pretty high "does not work with my setup for some unknown reason" rate.
I'm in the PC business and I bought this for full price some time back. I did not care about the Karaoke, I just wanted to transfer music to my Box over wireless ethernet. It worked fine the first 3-4 times I used it. Then one day I tried to send some stuff to the Xbox and it would not see the computer. It never worked again. There was absolutely nothing wrong with the Xbox, PC, or anything in between. It just stopped working for some unknown reason. I even hooked it directly up to the PC via crossover, turned off all firewalls, etc. etc. etc.
I tried off and on for another YEAR to get this thing to work and it never did. I finally GAVE IT AWAY to some clerk at Gamerush when they wouldn't take it on trade-in.
But don't take my word for it. Go check out the official board for this program/game over at Xbox.com. See the 1000s of posts from similarly pissed off owners.
I'm not saying not to get it, but I want everyone to be aware that whether the PC-Xbox transfer works for you is TOTALLY YMMV. That is all.