Released: 16-10-2012
System Software Changes:
Added: Internet Explorer browser to Apps
Added: “My Pins” panel
Added: “Recent” panel
Added: Recommendation panels to Dashboard
Added: Ability to name console from settings
Added: Access to Xbox Video and Xbox Music apps
Added: SmartGlass
Added: Play To
Added: Gamertag in corner of screen now shows users email address
Added: “Security Proofs” under Account Security
Added: Add new anti-piracy scheme on AP 2.5 and XGD3
Modified: Smaller background stage size
Modified: Dashboard tiles enlarged
Modified: Combined TV and Video into TV & Movies
Fixed: USB bug when unplugged from console
Removed: Companion Devices from Console Settings
Removed: Facebook & Twitter from Social Apps with introduction of Internet Explorer
Unpublished Changes:
Authentication servers updated
How to install:
1.) Unrar the download
2.) Copy the $SystemUpdate folder to the root of a CD or USB Stick (The memory stick must be FAT or Fat32 formatted)
3.) Insert the CD or USB Stick into your Xbox 360 console.
4.) You will be automatically prompted to update with a USB stick, with a CD / DVD it should say Mixed Media Disc, power down the 360 and power it on again. You should be ask to update before the 360 boots to the dashboard.
5.) Once the update is complete your Xbox 360 will restart then boot up to the new dashboard. Enjoy!
Hope this helps those who haven’t gotten it yet!
Download: http://www.mediafire.com/?7dc6t4opp0ac9yv
Backup Download: http://download.digiex.net/Consoles/Xbox360/Dashboards/2.0.16197.0.zip
Credit: Xbox 360 Dashboard / System Update 2.0.16197.0 Download With Avatars

