1. RROD seems to be a thing of the past at this point. I own a pawnshop and have sent numerous consoles in, receiving all of them in no more than a weeks time everytime I have sent them in, in case you do have a problem.
2. The Elite is basically a "PRO" model with a 120GB HDD, if you plan on downloading a crap load of media then it is worth the money, if you're simply going to play games, buy the PRO and wait on larger third party HDD that will be much cheaper. There is rumor of a 320GB HDD coming out that will plug into the USB and be compatible.
3. I don't believe there will be another substantial price-cut or system altering SKU until E3 2009.
I'm not an expert but I have been an avid XBOX 360 gamer since their debut and plain and simple, it is the best gaming unit on the market and you should not wait any longer to enjoy the euphoria that is powering up your 360 and forgetting the rest of the world for as long as possible while you pop heads online with your friends on a little hit game known as Gears of War.