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1 of 3 people I know with a 360 have had it RRoD, but I didn't see the machine with my own eyes (he's got a replacement now, and he's happily playing Mass Effect). That said, I've seen three RRoD machines, all in retail outlets (1 in HMV, and 2 in Game).

Before I moved into this generation of gaming, this convinced me not to buy a 360, even though one of my mates tried his hardest to convert me.