Microsoft announced today that they are extending Xbox 360 warranties so they are a 3 year warranty instead of a two year. However this is only to users who have had the 3 flashing red lights of death happen to their console.
Any Xbox 360 customer who experiences a general hardware failure indicated by three flashing red lights will now be covered by a three year warranty from date of purchase.
It applies to new and previous owners of the console. Microsoft also says that any user who has previously paid for expenses relating to the 3 flashing lights of death, Microsoft will re-reimburse that customer. Totally sweet!