Yes, there are problems being reported all across the internet on various forums.
First 10 Bioshock related Xbox 360 failure reports originating from NeoGAF forum:
NeoGAF user 1: BioShock killed my 3rd 360
"You unreliable piece of ****. Yes, 3 hours into BioShock, my 360 froze for the 2nd time (1st time froze 30sec into the game), and then I turned it back on to the lights of death.
The ironic part of all this is that I have EB Games warranties, so every time I replace my 360 at EB, MS gets an extra sale."
NeoGAF user 2: "BioShock just broke my launch 360, too... I didn't even get past the main menu. I've restarted it about a dozen times now. The first few times it was 3RROD. Then it booted up fine again. Then it carshed. One more 3RROD. Started to boot to the 360 logo, would crash and freeze in the middle (No 3RROD) for a few times. Now I get nothing at all. It simply boots up, no lights except the power symbol. The system just turns on, fans increasingly gets louder, and absolutely nothing.
So, now I'm thinking I won't be able to get this repaired for free, because I don't get the 3RROD anymore.
:|"
NeoGAF user 3: "You have got to be kidding me.I just got Bio Shock and Blue Dragon comes out next week and I go to play Bio Shock and I am greeted with this"
http://img.photobucket.com/albums/v322/cmagus/death-1.jpg
NeoGAF user 4:"o RROD, but I'm getting this #### all over my screen now. So, is my 360 gone now? Anyway, I have an EB warranty on it so I guess I'll get it replaced tomorrow...
FUUUUUUUUUCCCCCCCCCCCCCCCCKKKKKKKKKKKKKK. I wanted to play this tonight. That's what I get for getting the game early.
"Things Break." No ####. MS why have you forsaken meeeeeeeeeeeeeee?!"
http://i57.photobucket.com/albums/g209/purgeface/DSC00798.jpg
NeoGAF user 5: "So I bought Bioshock today and played about as far as the demo goes. Had dinner, went back to it, and the game wouldn't load. Now the game either wont read or it gets an unreadable message after the title screen. So i started trying other games. When I load NCAA or Oblivion, I get a white screen with Japanese text that tells me I need to put the disk in a 360 (no S^$^)."
NeoGAF user 6: "Fuck, my 3-ring of death cherry popped...again.
Right when I ####in got Bioshock.
Anyway, I'm doing the towel routine. To see if that works. Any advice on how long and how the system should be set-up before doing that?
Also, I bought the 360 -- the 1st one broke, I bought a 2yr. warrenty for that one, used it to get my 2nd one -- which just broke right now, like 2 minutes ago. The exchange for the second one took place 1.15.07 -- it is now 8.21.07"
NeoGAF user 7: "I was playing Bioshock on my new Elite using my old 20gig HD (transfer kit ordered). About 30 minutes into the game, I got the dreaded "DIRTY DISC ERROR" and got kicked. When I tried to reboot the game, Bioshock would get to the title screen, then give me the Dirty Disc Blade of Damnation. It did this four times before I contemplated hammer therapy on my new Elite."
NeoGAF user 8: "30 seconds into Bioshock, exact same thing happened to me. I'm now getting the RROD. Damn thing ran like a champ until I tried to play Bioshock, now I'll be late for Halo 3 unless I buy a new console. Are the falcons showing up in stores yet?
And when I send this one back, do I need to send the hard drive back with it? Do they format it? I'd be REAL ####ing ####ed if my console came back with all my data wiped."
NeoGAF User 9: "An hour later I tried again and it worked fine again, played a bit of bioshock and then boom, ROD again. Oh well,I was gonna send it back anyway.."
NeoGAF user 10: "Shit, Mine Red Ringed Just as i turned on Bioshock. Also, The stupid ####s at gamecrazy refused to take it back because it was three red rings, and not some other failure problem. ####ed away a good 40$ warrenty. ANyhow, do the ones the send back fail, and how long does it generally take?
Also, somthing tells me metroid Prime 3 is gonna be my new best friend for the next couple of weeks... sorry bioshock."