http://www.engadget.com/2008/11/20/nxe-hitting-360s-with-red-ring-freezing-and-sorta-sexy-avatar-i/
As per the engadget article linked above, the 360 NXE is causing way more problems then it was supposed to text below
If you wouldn't mind looking up from that avatar creation screen for a second -- yes, we're aware of how much that t-shirt selection means about you as a person -- you might notice that your Xbox 360 is dead. At least, a few hapless souls on the Xbox forums seem to think NXE is to blame for such atrocities. Numerous folks are reporting variously bad red ring configurations, random freezing and a huge pile of blockbuster titles that won't just play themselves. The biggest problem is that Microsoft isn't universally treating problems caused by NXE as an "oh, our bad" sort of situation, and at least from anecdotes we're seeing has charged quite a few folks $100 to fix their freshly-out-warranty Xbox 360s -- not to mention separating them for weeks from their precious murder simulators.
So yah, MS douchebaginess strikes again. They release the NXE right after warranties end because they know it crashes machines. It causes things to break down from games not working through the red ring of death. I really hope they get creamed in that pending law suit. I can't believe that they are charging 100 dollars for 360s broken by their crappy update. MS is continuous fail with 2 strong competitors, imagine how bad things would be if they had the market to themselves.
PSN ID: ChosenOne feel free to add me