Videogirl said:
The three years warranty applies only to RROD but the 360 seems to be suffering from dozens of problems which require expensive repair assistance (around 100$) after one year warranty : - E74/One red light (second most common failure) - E79 - black screen but sound, or picture but no sound, - disk drive dies, scratches games or even break them - disk tray which opens by himself in the middle of a game (or which doesn't want to open at all) - Message "to play this disc, put it in an xbox360 console"when you put a 360 game in the 360 (isn't it ironic ?) etc. Just go there and see by yourself : http://forums.xbox.com/281/ShowForum.aspx
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The disk scratching resulted in a class-action lawsuit that MS settled. The other issues are fairly rare.
Be careful trying to draw conclusions from anecdotal evidence, i.e. - reading forums where people post about the problems they're having with device X, company Y, etc. Even if you read 1000 posts saying that someone has a problem with device X, but there are 10 million of those devices in use, then that's still a very low failure rate. The primary problem is that almost no one who is having success with a product goes online and posts into a forum "Hey! My Widget 3000 isn't broken and I've had it for over a year! Isn't that great?"