Ok, i've been reading some articles about some problems that some folks are having with their shiny new 360s:
This pretty much sums it up.
However, it remains to be seen whether or not the problems are widespread.
EDIT:
I'm ammending this because it now appears that the info that i posted (which was posted as a quote from Molly O'Donnell, a spokeswoman for Microsoft) was slightly optimistic.
The following is what i've been seeing posted on numerous sights:
link O'Donnell said the best way to resolve the issues is to call 1-800-4MY-XBOX for trouble shooting. If that does not solve the problem, she said, Microsoft (Research) will repair or replace the unit. What differs from my original post/ link is that the original stated that MS would also cover the costs of having the defective units shipped express/ next day shipping to and from the customers (which i thought was uber cool). It looks like that was either wishfull thinking/misquote or MS changed their mind. Either way, i thought that i needed to ammend the original post to reflect the information that i've been seeing on numerous reputable sites.