How things have changed in just over a year, there weren't that many people here with the issue when I first wrote, but lots more of you have come to light - no pun intended - now.
For the record I still have the same Battery and Charger Kit, and changed the controller and no longer have the issue, so I think the issue lies with controller itself.
Just going off-topic for a bit:
After being an owner of the original launch console I'm sorry to say that my original 360 succombed to the dreaded ring of death. Since then I've had nothing but trouble with replacement consoles, the first one I've had didn't even attempt to play a game disc, it just made a horrible noise - kinda like it was eating my disc, but thankfully nothing happened to the disc itself, no scratches etc. - I then had another console where by I'd power it up, but nothing would appear on the screen, and only the power light on the console light would appear, no quadrant light on the console would be lit, and all four lights on the controller would just flash as if you'd accidentally turned the controller on without using your 360 console. It got to the point where I'd have to power the console on and off about 3 times before it would finally start properly. Sometimes it would come up with the error screen E69 or E67, removed the HDD but still failed to start correctly.
I got fed up of this and decided to replace the console as faulty, and got another replacement, this one booted up fine, however just about a month later this console too now is exhibiting the same symptoms, I've now got another replacement which I'm hoping to try tonight - I'm not giving up on the 360 as I love it too much, but I'm finding this increasingly frustrating, perhaps one faulty console I could understand but 3 in a row, jesus!
Has anyone had any similar issues?
Steve