Now, I sympathise with you....ive had 4!!!! different 360s since launch
1st one (nov 05 manufactured) kept freezing on me but no red lights. picked up and then replaced with a second model.
2nd (dec 05 manufactured) one the vga output decided to show me all the colours of the rainbow on the screen aswell as flickering from black to white. Picked up and replaced
3rd one (Jan 06 manufacture) decided it wanted to freeze every ten minutes when playing Oblivion and Burnout, very very annoying. (Picked up replaced)
4th 360 (Nov 05 back to square one oldest of the lot) Has been fine since ive had it fingers x'd but my pad has been going weird since I stuck my HDD one. the light on the pad keps going around in circles, same goes on the 360 at times. Maybe its explainable...
Anyway, moral of the story, spend even more money and but the extended warranty fot it as a call out from MS when out of warranty is £59.99 according to the guy on the phone.
Also, without asking they offered me a 360 title from selection of games as well as a wireless pad. The guy said he was suprised no one had offered me any compensation.