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This makes no sense.  There are power fluctuations in the power coming from your wall socket, which, if anything, a surge protector would dampen.

Maybe we should do another polling thread, and ask everyone who reported problems with their 360 if they were using a surge protector, a power conditioning surge protector, or an uninterruptible power supply (battery backup).  Ask those with working 360s too, come to think of it.