We've got a simular policy at the store I work at too.  For us it's better to let the customer know in advance, rather than them come back later on pissed off  (moms tend to be the worst) if it malfunctions.

The halo 3 360's, at my store specifically, are already at 10% defective rate. The "improved" CPUs might have helped, but not much.

That's a bit awkward, having a RRoD Elite on display like that... Why didn't the store clerks remove it? Yeesh, talk about promoting your wares!

which would imply that the graphics card would be a problem as well. everyone thats thinking about getting a 360 should wait for a resized graphics unit.

i saw a pic awhile ago of the 360's heatsink, a comparison between the old and the new, it seems they have reduced the size of it by a substantual amount.

on a simular note, i have a friend that bought the intercooler for his 360, and he is starting to see some signs on the machine having perminent problems. it makes me wonder if normal use is just too much strain on the motherboard.. even in a well ventelated area. 

Microsoft seems to be unable to create a console that doesn't overheat easily. My GameCube ran for days without a rest , My N64 ran like two days without a rest and my SNES used to be able to go ages without a rest too.

My Wii has been on since I bought it and it still works perfectly (Except the odd time I unplug it that is). I hear a little bit of PS3 breaking down but not as much as I hear about 360's.

Fact is Microsoft is a software company not a hardware company. They have proven their inability to create quality hardware the only problem is the only way to enjoy their decent software is to own their crappy hardware. So were stuck owning crappy overheating consoles!

In all fairness a PS3 might very well overheat in that enclosure. It is hella small with no breathing room.

Talking about misleading tread... I see PS3 froze up due to overheating in a display kiose all the time, why is this a surprise for 360.  If you have actual info on large number of new Elite suffer from RROD then make a post , why post misleading crap like this on a forum.

I have an Elite unit from way back in April and another one in July.  It get used all the time as it also being use as Media Extender and DVD unit and I yet to have the unit freeze on me, let alone RROD.

How come Sony are perfectly capably of making a more complex console with more and faster processers which I would guess generate more heat, and I works silently and stays cool, even with an internal power pack. I have left my PS3 on for weeks at end without any problems (athough it is the European model). I saw a video comparing the sound of the two consoles working and the PS3 was silent and the Xbox was so loud.

This reminds me of those reports of all those PS3's overheating in Kiosks like those back at launch.

 At launch, not nearly two years after launch with a newer model