For those of you who don't know, Xbox 360s have some fundamental design flaw that causes a large number of them (rumored to be every single one of them) to fail. Microsoft has really stepped up to the plate, however, by extending the warranty by 3 years on all 360s.
I guess I am lucky in that mine failed when it did, hopefully I can get it repaired and back before Halo 3 & GTA 4 come out.
So I called up customer support and you know right off the bat that this is a huge problem because they have already worked the 'three-flashing-red-lights' problem into their automated messages. After waiting on hold for 30 minutes, I got through to an agent who helped me arrange for my prepaid shipping box to send my 360 out for repair or replacement. ETA on the shipping box is 3-5 days. I read online that some people got their box overnighted, we'll see I guess... ETA on the repair is 3-4 weeks (Yikes). I guess this gives me an opportunity to catch up on some house projects.
For my troubles, Microsoft is giving me a free 30 days of xbox live (a whopping $5 value). I guess they are hemorrhaging too much money on the shipping for all these defective consoles. Not to mention they lose money up front on every console they sell.
Believe it or not, this has not turned me off from the 360 nor Microsoft. I think they're really making of effort to correct their mistake. And I'm still over-all very impressed w/ the 360. After working in hi-speed circuit design now it's a no wonder they didn't get everything exactly right on the first try, that shit is tough :).