My sister's 360 is performing the famous Microsoft Self-Induced Fist Fuck too...good thing the twat running the division has extended the 1 yr warranty to 3 years...although crap hardware will fail eventually...I've had my PS2 since '04, but put a lot of manhours on it, it will not die.
The shitkicker is that she has to wait for the dumb bastards to mail her a box, she has to ship it out (a formidable task, she's very lazy), and she has to wait for them to diagnose/fix/replace or they could give her the Ole Microshite Run-Around. We shall see.