Quoted: I'm willing to bet 90% of the problems with the loaded XBOX 360 is the video cable that has a little switch that says HDTV, regular TV and they aren't switching it. FUCKING IDIOTS!!!!!
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From what I've been reading--I find this very interesting to read about, kind of like a trainwreck or any other disaster--there is actual hardware failure codes coming up.
People are speculating that it could be an overheating problem, and someone else had some 2nd or 3rd hand info that there was a 'list' of 360s that are known to be defective but got out the door. According to this theory, retailers were sent a list of serial numbers (or maybe LOT numbers?) to catch the ones that got through before they were sold at the retail outlet. Who knows if any of this is accurate, however.
I did see a couple of pics of these hardware failure codes, and one guy even made an .mpg of his 360 freaking out. It will be interesting to see how it all pans out.