microsoft increased their warranty on all xbox 360s to 3 years so i would just wait for it to break and then send it off. no reason to buy a new one. i've heard it takes about a month to get the xbox back. when it breaks go and buy one at Circuit City/ Best Buy and return it when the repaired one comes in. they are readily available in the store so you won't have a problem getting one.
i think you get 30 days to at return game consoles at these stores but it might be 14 days. If that is the case buy at one store and return, then go to the other store and do the same.
'01 Bullitt #0054