Welcome to the club. If you have a 360 purchased before last summer or so, it's a matter of when -- not if -- your unit will fail with the Red Ring of Death. They really should make getting the RROD an achievement. :P
Fortunately, MS has done the right thing and extended the warranty to three years for units that die from the RROD (all other failures still only have a 1-year warranty, but they're far less common). It took about three weeks for me to have a working unit back in my hands after I called MS to report my RROD.
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