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Aren't there like 1000 class action lawsuits against Microsoft for 360 failures?  Isn't this relatively old news?  I've had a disc scratching 360 and it was quite difficult to get them to cover it under warranty.  They did replace my console and they did replace the Halo 3 disc as it was requested that I send it in with the console.  Maybe EU service is much worse but Microsoft always seems to take care of me, just sometimes it takes a little more patience and explanation than others.