The Xbox360 premium and Elite editions came with upgraded heat sinks that take care of most of the overheating issues.
Many issues seem to come from people playing games like Forza2 for hours upon hours in on sitting while having their system fully covered without ventillation. If you ensure the unit has enough cooling and airflow, you'll be fine. Just don't be stupid with the unit. It's basically a computer and needs to be treated as such.
I've been enjoying the media capabilities of the Xbox though. Encode your video in the right way and you can stream everything through your network. Works pretty good so far. I just wish they'd upgrade the system to play xvid/divx natively.
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