Whisper, i thought the towel trick intentionally makes it red-ring so that you can send it back to MS in exchange for a newer model (less likely to red-ring)?

The towel trick both fixes and breaks the console. If you have a working console, the towel will cause it to overheat and red ring. If you're console has already red ringed, overheating it again causes it to turn itself back on, albeit for a short period of time. I did it myself to play Rock Band for another week or two before sending it to Microsoft for repair.

I called the store ( I just woke up ) and they will exchange everything. I'll then go register my new xbox on xbox.com. Thank you all for your help.

I'm a bit scared now.. I have athree months warranty with xbox right? but what happens if I get the red ring after four? I just bought a -new- xbox and it died on me. It scares me to no end :P

You have a 3-Year warranty on your XBox. And seriously I didn't hear anybody complain about a new model broken XBox for quite some time. Mine is running without any problems for almost a year now, and I've been carrying it around back and fourth since.

Yeah, I haven't heard of these problems for awhile either too. I thought those days were over.

Yeah, it's rare for a new Xbox to die. They don't have the 33% failure rate the launch consoles had, you were just really unlucky. The second generation, the Zephyr, with a 65nm CPU had around a 14% failure rate. The third generation, the Falcon, is even more reliable (and is the likely console you'll find in stores today) and the new Jasper chip has a 65nm CPU and GPU and is said to have an industry standard 4.5% (if memory serves me correctly) failure rate, same as Wii and PS3. I'd imagine if you just bought it new right now, you could very well have a Jasper console. As for your console failing after the 3 year warranty, well I'd like to think if it's survived that long you have a none-faulty console. If you're that worried, just towel it after 2 years and 11 months and get a new replacement before your warranty ends :P

Edit: Did a bit of research, the Jasper chips are in 360's with a manufacture date of August 6 2008 or later, and the lot number 8031. If you're going to get a replacement in the store, see if they have one. I'd imagine all new stock will contain the Jasper boards.

Oh, Jasper's already out? Didn't even knew that, since even my Falcon runs smoothly :)

Well, it was scheduled to be out in August. I'm assuming they stuck by that schedule.

Silent Hill Origins (on the PSP) is actually good :o
Not much story-wise, but the rest is awesome.

PS - I'm playing it right now for the first time. Almost at the end.

The same can't be said for the new next-gen Silent Hill unfortunately, which has been getting pretty mediocre initial reviews.