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With the warranty you return the console back to the store if there are problems.
1 out of 3 Xbox 360 machines will have hardware failure due to overheating. They use a 90nm chip that gets very hot. The X brace supporting the chip will not allow for expansion and the board cracks.
I sent my brand new console back to Microsoft and they sent me a refurbished machine which is going through the same problems the original machine had. Screen freeze ups, disconnects from on-line play and disc error readings. I have a 6" diameter fan blowing on it while playing games.
Wait for the new machines with the 60nm chip.
Go to xbox.com to read the posts from angry gamers.