Mine was out of warranty.
They sent me a pre-paid "coffin" for my 360. I shipped it to them, only having to pay for some tape for the box (they give you free tape too, it just wasnt enough IMO).
Upon sending the coffin out, I had a new/refurb 360 in my house, playing it, within about 5 days. My total cost was 5 cents for the tape.
Back from the dead, I'm afraid.