My brother owns the 360 in our home. It's Red Ringed on us only once, whereas we've had to get it shipped and fixed several months ago. It's worked fine since.
A few days ago, he pimped out his console to one of his friends because he too got the RROD and had his sent out, and he was going through a massive PSU withdrawal or something. Money changed hands, and my brother was one less 360 until yesterday morning, when his friend returned the console... broken.
Apparently, there was a video issue. Not RROD, it just wouldn't output video. After some troubleshooting, we confirmed that there was an issue with the console itself, only further confirmed by Customer Service, who revealed to us that this "video outage" has become quite common lately.
Well, brother wanted his fixed. CS told us to fork over some dough, as this video problem was not covered by the recently instuted RROD free fix. He said F to that. I did my part and googled for more info. Turned out others definitely had the same problem... yet another inherent design flaw. Le sigh.
Several methods exist to cure this problem, I found:
1) force RROD, and have Microshaft fix it for free
2) wrap a towel around it, boot up and let it sit for 15 mintues or so, power down, remove towel, allow cooling, and boot it up again. Apparently works for this issue as well as RROD.
3) get a nice new Elite sometime in the future
We tried #2, because it was faster and in doing so may inadvertably trigger #1. And lo and behold, it worked. And still works today, sans turban wrap.
The Moral of this story? It's never good to rush products to market or to cut corners to save a buck.
For someone who has recently acquired a XBOX 360, it scares me that there were other flaws besides the RROD.
I thank you for the info.
As someone's who owns two 360's for quite some time, only one of which has RROD'd, I can proudly say that I haven't heard of this video outage problem.
wow. Thats pretty nuts. Glad to hear its working again. I have yet to have my 360 get the RROD. Its been good to me, so hopefully it keeps being good because I have no clue where my receipt is for it. 
I get two red rings sometimes, not sure what that means, but all I do is turn it off then turn it on again and it usually works. In fact it's been doing that since the first week I got it back in april/may.
I've been wondering, does the overheating damage the 360 in the long term or do people just over-react because it gets a bit hotter than any other system we've had so far? I wonder because I can get it fixed so that it doesn't overheat.. for a price, but I wouldn't bother if there's no proof that overheating actually causes three rings or something else.
Does anyone know if the 65nm CPU and GPU will have these problems? o.o
