After setting up my 360 and having it work for a couple of minutes, I started getting the '3 red light error' which denotes a 'hardware failure' of some sort. After panicking, fretting around and then scrounging the internet for answers (how i stumbled upon this site) for most of the day, hoping the problem would correct itself in the meantime, I called MS and got through after a lengthy wait. The service rep had me unplug and plug the power back in (Ooohhh! Why didn't I think of that?), after which he said that i need to send the 360 in. I'm thinking..here we go, I won't see this thing for another 2 months. Suprisingly, he says that they are going to overnight a box to me that has prepaid shipping back to MS for overnight also. He says then after they receive the box, it is a guarunteed 3 day maximum turnaround. I would estimate a week total wait period...rough, but managable. I asked him if this was a wide-spread problem and he said no, not at all. Don't know if anyone was interested in this, but there ya go. Oh PS...FYI - I have heard a lot of people say that this problem might be associated with the power brick. I don't believe this to be true because the rep. told me to send ONLY the system and the hard-drive.