Forza Motorsport 2 users (a XBox 360 game which has just been released) are complaining en massa about system crashes, check this huge thread with over 900 comments and growing rapidly:

http://forums.forzamotorsport.net/forums/1/178846/ShowThread.aspx

A few comments:

"Add me to the list. Mine freezes up about once per hour also, although its been getting worse. Console is well ventilated and in horizontal position. I've had the freezing problem and the "To play this disc please insert into an XBOX 360 console" problem. It occurs at the start up screen, in the menus, in the races..every part of the game. Like most people on here, Forza is the only game that I've had this problem with. When it freezes up I get a clicking sound from the console like a CD player skipping. Its frustrating cause I'm really addicted to the game....when it works."

"If we have problems, they should be fixed. Free. Because it's this game that is causing it, regardless if it's the 360's fault in hardware, THIS game is causing the hardware to fail and freeze and of couse I'm mad because I had to buy a new 360 because my old one BRICKED while playing Forza (no prior problems) and now my new one bricked too (playing FORZA) and I have to send it in for repairs. Within one week of buying it, my brand new out of the box 360 got 3 red lights. Because of FORZA."

Microsoft official response to XBox 360 failure reports: Well, things break!

Yeah Microsoft needs to do something and do it now before all this bad press pulls down 360 sales to below even the PS3.  Nah, who am I kidding, it likely won't get that bad but they seriously need to do something about it now.

OMG, Microsoft coverup in the works:

Microsoft deletes mass Xbox 360 crashing claims from Forza 2 forums

Great customer care.........................

Intercooler is only good if you have your 360 in an enclosed space where theres no ventilation otherwise its just a waste of money.

Microsoft Covering Up Forza 2 Crash Forum
http://news.filefront.com/microsoft-covering-up-forza-2-crash-forum/

MikeB: instead of posting offtopic three times, why not start a new thread? I feel that Microsoft mass deleting complaints about the stability of their game is perfectly valid news, and by starting a new thread with all three links in one post, you will not sidetrack this thread about an unrelated problem no longer being serviced by a (retailer?).

At the same time, what you are posting about is news and should be discussed, so why not make a new topic?

(sorry to go MORE offtopic, everybody)

 thats what I heard, but a 360 owner who is worried about it sayed it was a problem with both sofware and software and that it would happen when the consoles thinks that it´s beeing hacked or someone with a hacked console tryes to go online, don´t know if this is true but if the processor was the problem it would not be only 50 bucks to repair it

What is the life of the average 360 that breaks? Do they start malfunctioning after a couple of months, or is it a pretty once-you-got-it-out-of-the-box-you-know-whether-it's-gonna-break-or-not kind of thing?

@ alpha_dk

Sorry, I thought it was ok as it's related. There are so many XBox 360 failure threads already....

On topic: MicroMart: "We're not taking that thing on board, we won't repair them"

"We would probably end up charging GBP 100 for a repair and we still wouldn't be happy with the end result"