This is the kinda thing that's keeping me for going out and getting my new one, I'd rather not play at all and be sorta miserable than have to swap my 360 out every other day.
As far as surge protectors go, there's really nothing in them that can be bad for the 360. Even the really cheap ones are just metal rails that connect all of the outlets together and have some small amount of surge protection. If you're using a heavy gauge cord from your outlet to the thing it should be fine. I'm sure they'd like, as would anything that uses a good deal of current, for it to be plugged in as close to the outlet as possible, but sometimes that just isn't the case. If you're using a heavy cord from the outlet to the strip I say you're fine.
Since you've been thru a few of these things now, IF it happens again check and see what the secondary error code is before doing anything else with it. Check the one you have now if you read this before you take it back.
Fire up the 360, wait for the error lights to blink.
Press and hold in the "Sync" button (keep holding it)
Press the eject button and the quadrants will flash faster, and possibly a different number of them, remeber how many quadrants flashed.
Press it again, then again, then again, then again remembering the number of quadrants that flashed each time. The last time it will return to the original slow blinking main error code it started off with.
An example of the secondary code is the very popular 0102, that would start off with the 3 red lights flashing, then you hold Sync and press eject and see 4 all quads flashing, press eject then 1 flashes, press eject then all 4 flash, press eject then 2 flash, press eject again and you're back to the 3 red lights it started with.