Just a sticky for info - for discussion, see Gareth's thread
HERE.
Microsoft has extended the Manufacturer's Warranty on the Xbox360 to three years for any problems regarding the "Ring of Death" (three red lights).
This applies globally, for all existing owners and all new owners.
Xbox360 owners who have previously paid for an out-of-warranty repair for the "Ring of Death" will receive a refund (and should "expect to receive a cheque in 10-12 weeks" according to the
FAQ).
For all faults other than the dreaded "Ring of Death", the warranty remains at 1 year as standard.
Important links:
"Xbox 360 Warranty Coverage Expanded"
"Open letter from Peter Moore"
"Expanded Xbox 360 Warranty Coverage FAQ"
And a BBC News story -
"MS facing $1bn Xbox bill"