Does anyone know if install of the 360 version is required/recommended? If so, what size? Deciding if I need to pick up another USB on launch to run it off of. (Only have the 4GB HDD 
We’re don’t know yet. I can only give you this info that Amazon UK and some other stores give…
Installing complete game to hard drive is always preferable to running the game off disc.
Your gonna need a bigger drive. Most games that are newer now even for the 360 are a lot. Destiny was like 8 something gigs just for the install. I know it’s a different game. All the newer games for 360 have a big bit of install.
I still have plenty of room left and if pressed, I could always delete LA Noire as it takes up at least 20.
-k
You can get a 250GB HDD pretty cheap off ebay. Usually for around the price of a couple of good USB drives, but with 20 times the space! Save up for that instead of buying multiple USB drives, your xbox will thank you. 
It will also cut loading times and generally result in a smoother all round experience.
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I would definitely get a hard drive. The demo on xbox one is 10 gigs. That is just the demo!
OP,
You don’t need install games in order to play them. You can play them off the disc perfectly fine. Somebody correct me if I’m wrong, but I have not heard of a single X360 game that asks you to install in order to play. An exception are games that require HD texture packs like the BF games - even then you have a choice however, as you can choose to play using low res textures. Though in your case, 4 GB space is more than enough for texture pack installation. Up to 2 or 3 games at a time.
Back on point - Don’t waste money on USBs. They’re not as fast as traditional console HDDs and swapping devices to play different games could get cumbersome. Just get a 120 GB or 250 GB MS certified HDD. It’s faster, cost-effective and convenient.
Alternatively, you could run games off your discs, though you might end up building excessive heat inside your console, as well as shorten the life span of your DVD drive. Rule of thumb: always run games off HDD to prolong the life of your console, have them load faster, and keep the console purring smoothly.
Happy roaming,
Speed Demon
@Speed Demon
I recall that Watch Dogs for the 360 has a mandatory install before you’re allowed to play.
I think the latest Wolfenstein had a mandatory install too.
Regardless it’s always better to install, it runs smoother, loads quicker and prolongs the life of your console.
GTAV was the last game I played for the 360 and it had a mandatory install, if I recall correctly. (I sold one of my 360s and gave another to a kid with no game system so I haven’t played any newer games on it.)
It was always preferable to install the game so your disc drive wasn’t taxed as much, especially if you play a lot. Load times are greatly improved also. I went through 4 Xbox 360s and two of them died from bad disc drives.
Granted, the bad disc drives were on the first generation XBox 360s and not the redesigned version which I never had any trouble with.