I bought an Xbox360 in October 2008 and, believe me, this thing has seen heavy usage. It has never exhibited even the slightest problem.

It is inside a closed cabinet and I anticipated heat issues, so I cut a hole in the back panel in which I installed an 80mm fan that is activated by a heat sensor. The fan usually comes on after about 20 minutes of playing.

Axiom M80s + QS8s + VP180 <-- Pioneer VSX-1120-K <-- Squeezebox Touch / XBox360 / Oppo BDP-93