I would just make sure you don't put the console on carpet or next to the entertainment centers walls. Keep it atleast a couple inches away from them and dust it every so often. Keep that in mind and you should be fine.

For games I will recomend a few for ya, not all of them are graphic whores but they will all be fun.

Dead Rising (very cheap and tons of fun)
Left 4 Dead (very fun)
Gears 1 & 2
Mass Effect
Fallout 3
Oblivion
GTA IV
Rock Band 1&2
Fable II
UFC: 2009 Undisputed

I would also put Call of Duty 4 in there but I don't think it is as good as halo 3 and ODST on its campaign. The biggest draw for COD 4 (for me) is the online multiplayer.

If you want to show off your HD TV, I say:

Soul Calibur IV looks incredible in HD.

Oblivion's engine is a bit dated, but aside from that, the enviroments are still stunning. The most realistic nature ever aside from crysis.

The visuals in Fallout 3 are also pretty nice.

360 doesn't have 3 year warranty in bolivia.
just 3 months.

Thanks for all the answers!
Sadly PS3 is not an option, I wouldnt be able to buy any games with the console, and games are around 100~130 dollars a piece here, I'd hate to have to import everything (I guess ill have to miss out on GOW, GT, the Uncharteds and MGS4...). Also, I have never seen a single bluray in Bolivia...

get Gears! those games look amazing. Also Modern Warfare 2 will look amazing! Oh and dont forget Mass effect 1 and 2

Don't want to influence any bad thins bad you live in bolivia and there aren't that great copyright laws so if you decent internet connections and you're not going to play on the internet then you might as well just burn games like for the ps2....

The latest Fifa games have been a lot better than the PES games. Also: Fable 2, Forza 3, Alan Wake, PGR 4, Devil May Cry 4, Street Fighter 4, Fallout 3, The Orange Box, Modern Warfare 2 and Assassins Creed 2.

i hope you dont get the rrod when mw2 comes out ):

Oh, and one last thing, is HDMI really that important? i mean, I don't mind paying if there will be a noticeable difference, but a friend of mine told me he hasn't seen any difference between HDMI and component in his display (he has a 720p/1080i 32 inch LG) i have a Samsung 1080p 37 inch, is it worth it?

the no warranty factor is a big risk with PS360 since both of them tend to break (even if not very often, they still do)