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I always hear different things about vertical vs. horizontal. I finally settled on horizontal. It seems like then at least all the vents are open. If you put it in a vertical position, you're actually blocking one vent. I also stick with horizontal because it's less likely to scratch a disc. I have never had any scratching issues, noise issues, or overheating issues with my 360 (Falcon), but I don't want to start having them, so that's what I stick with. I keep my 360 on very open and well ventilated tempered glass shelf on my entertainment center. That way there's no carpet to collect heat and static.