I inserted my usb 2.0 on my Xbox 360 and it says that I didn't meet the minimum requirements for the USB even my usb has 4gb capacity, but when I inserted my 3.0 with 32gb it's fine. So can I still use usb 2.0 to transfer games on Xbox?
The 360 is only USB 2 so it being USB 2 or 3 shouldn't matter. what kind of USB drives are you using? If it is some older 4GB Flash drive it could just be slow. And most of those are just if you install games to them and play them off of them they may not read fast enough to play properly. If all you are doing is transferring data from one 360 to another then you can ignore that.