This is one of the biggest mistakes Microsoft has made. Granted it’s only their second attempt in the console gaming market and they’ve been in the game less than a decade, but this issue is tarnishing their excellent run with the Xbox 360 this generation. Thankfully, Microsoft is acknowledging this issue and has extended their warrantee to cover not only the dreaded RRoD but also a slightly less known issue known as E74.
If your console has either of these hardware failures you will get a replacement with no questions asked. This is good, but not having the issue in the first place will be better. I bet Microsoft has learned their lesson this time around and we can bet the next console from their camp will be a lot more stable.