I have yet to have any problems with my Xbox 360, however, many unlucky gamers have had their stomachs drop when they've seen that red ring of light flash on their 360s, telling them that the console is not happy.
I bring this up because longtime Lunabeaner, Mindy, today posted her experience with a red ring of death.
One interesting nugget of knowledge that came out of this is that if you are experiencing the red ring of death, you should try plugging your Xbox 360 directly into a wall outlet. You see, sometimes a powerstrip or surge protector does not give it enough power and it needs a mainline source of juice.
If that doesn't work, you can always try wrapping your Xbox 360 in blankets.