There have been rumors this weekend on a Xbox 360 keypad, which which attaches to the Xbox 360 controller. Yesterday evening, Major Nelson confirmed the input device as well as the official announcement of the Xbox 360 Spring update.

From the announcement: "Beginning the week of May 7, users of Windows Live Messenger on Xbox 360 can text chat using the virtual keyboard accessible on Xbox 360, or by connecting a USB keyboard to the console. This summer Microsoft will launch a QWERTY text-input device, a new accessory that will connect directly into the Xbox 360 controller to support text and instant messaging."

The Spring Update, coming May 7, will include features such as:
"A richer Achievement notification pop-up will showcase the name of the unlocked Achievement and the gamerscore value without needing to leave the game to check the Achievements list.

Enhanced family settings features for Xbox Live communications enable different defaults for video chat and voice chat.

A new Xbox Live Marketplace blade lets Xbox Live members access the content they seek—whether it is game content or TV shows and movies (available in the United States)—from one place on Xbox Live.

Updates to Xbox Live Arcade allow owners to quickly see which Xbox Live Arcade games their friends are playing and join in the fun. Xbox Live members can also compare progress of leaderboard scores and Achievements directly with all friends on their friends list. Expanded "Tell a Friend" capabilities make it easier than ever to boast about Achievements and high scores.

Expanded "Tell a Friend" capabilities make it easier than ever to boast about Achievements and high scores. A new option in Auto Downloads provides faster access to the entire collection of free, trial-version Xbox Live Arcade games.

New progressive download controls provide easy access to optimal viewing options by letting people fast-forward, rewind, pause and resume as their video is downloaded from Xbox Live Marketplace. Extension of the background download functionality will allow owners to set their Xbox 360 console to turn off automatically after downloads are complete."

Screenshots of the Xbox 360 Dashboard update and the Xbox 360 input device/keypad are here.

Source: Xbox