I called the M$ 1800-4myxbox number and I have a shipping address to ship my defective controller to.
They are waiting for mine first... which sucks.
They said nothing about knowing about this problem and
still took me through basic troubleshooting steps of powering down
the system... rebooting it... etc....
That doesn't fix the problem of plastic rubbing on plastic... but they had to
do it anyways....
...then.. after getting the address to ship it to, I thought... I'd just go to walmart,
look them over carefully... buy one - and then return my defective controller.
NEEDLESS TO SAY, I've been there TWICE today now. The one I bought is bad,
AND then I tried exchanging for one more, and that one is bad too!! Arrrgh!
So, I'm just going to take my newly purchased Walmart controllers back completely
and ship my original defective controller to M$.
If I buy another controller, it will probably one of those MadCatz or off-brand controllers.
This is ridiculous!
I'm glad one of my 2 controllers is good... so I can still play DOA!