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Is that the official line from MS then, Infinity? "We refuse to fix your broken console even though it's under warranty because we're jerks."

I've heard about a couple of people getting a repair refused because the console had been opened (possibly modded, who knows?), but MS didn't extend the warranty to 3 years so that they could say no to people without any good reason. If your console hasn't been opened or tampered with and the sticker is intact, they will fix it, and if it breaks again, they'll fix it again.