It was only a small number of 360s that had overheating problems. Just like the nanos with bad screens that got all hyped up.
I've had my 360 for about 3 weeks, works beautifully. There's suppose to be a big update for the dashboard today. And the update is suppose to fix some bugs in some games. I have been able to get perfect dark to feeze the system up once and awhile.
I've heard good and bad things about customer service. I've heard some people get replacement games for the scratched disc issue. Read the EULA, it says don't move the xbox while a game is in use, so that is a user error, but I hear M$ was replacing those.
During game play it is a little noisy, the cpu fans kick up. But it still isn't as noisy as the dreamcast cd player.
Also, it was the power brick over heating for most of them. They had the power brick on thick carpet. Don't do that.
I've been playing geometry wars and marble blast more than anything else. Marble Blast online play is awesome.
Other than a couple of games like perfect dark, condemmed, call of duty, and kameo I don't think the games are worth $60. I'm waiting until they hit bargin bins.
From the sounds of it there are plenty of live arcade games to be released in the next couple of months.
I agree with surf, the wireless controllers are great. For me they fit my hands and remote power on is cool. 360 Live is slick, download demos, movie trailers, etc...