another thing to consider is that microsoft doesn't fix all red ring of death problems under warranty. it has to be a specific malfunction/red ring problem of the 360.
so this "microsoft is your friend/has you covered" talk in this thread is bs. you won't hear them announcing the specifics of their new "3 Year Warranty" in major press releases.
this is what happened to my little brother. pretty weak on microsoft's end.
that said though, i bought my 360 last may, and have only had disc read errors, which are supposedly normal... so i can't complain on my behalf, only my bros.