Mine just shit the bed. Got the ol' unplayable disc. It is in warranty, and Microsoft is sending me the box to send it to them. I got an extra year warranty when we bought it at Xmas through Babbages. I think I will go back and see if I can add more on to it.
it's great, Gears and Crackdown are must haves. But I'd buy the store warranty, fuck what the other poster said about sending it to MS. If the year warranty runs out, it's $160 to get a new one, and it takes a month. If you have the store warranty, you take it back to the store and walk out with a new one.