this is the second time my 360 will go in for repairs. i got mine pre-ordered originally. about 6 months down the line it failed. microsoft repaired it with no problem. now when i received it at about 4 weeks later, i called to buy the "extended warranty," but i was told that i couldn't because it had already been the 30 day time to purchase although i didn't even have it at that time. that was 6 months from the original purchase.
about 7 months now from that repair, it again is flashing the three red lights of death. oddly enough failing at about the same time frame as the first time. now, don't be confused by the recent news articles of xbox extending the warranties by a year. i must have misread this because it simply meant that you have a year from the original purchase date, not an extended year. this means that my console and moicrosoft's repairs 7 months ago have no coverage. this requires me to pay for repairs on a piece of hardware that's life span is currently no longer than 7 months.
to top it off, the woman i spoke with was very difficult to understand. she was also having trouble explaining anything to me, putting me on hold frequently. i began asking for a supervisor. every time, the same woman got on the phone with a new statement. i asked again. after the 5th request and now being offered a 25% discount a supervisor came on the phone. she suggested i schedule a call back with repairs, because there might be an outstanding issue. i asked if an "outstanding issue" would come with repairs then at no cost. one would think so. however, when she came back, i was told i would still need to pay for the repair even if there was an "outstanding issue" with my xbox. then, why would i wait for a call back? if i still have to pay...
from what you read online and even at the xbox forums, this is happening frequently. on two 360's the failure rate is 100%.