My 360 recently died due to the problem with the Red Rings, well I called and they sent me the information and stuff needed to send my console in. I have heard that the 360 had as much as 33% failure rate which high but it wasn't until I went to the UPS store to send it off to Microsoft did I get a sense of how much of problem it is. The UPS store I went to is Janesville WI which is a city with a little over 60,000 people in them.
For those who haven't had the fortune of sending out the 360, Microsoft sends you a very plain white mid-sized box to send the system back in. As soon as I entered with the box the clerk behind the desk said "Oh, so you are sending your 360 in to be repaired." I had to go out to the vehicle to get some change. (I had to reopen the box to afix the reference number so I needed to buy some tape.) The reason he knew it was the 360 is that he has handled so many and infact it was 7th 360 that day to be returned due to the red ring problem. (There was another one or two sent back for other reasons.)
Even though 60k people are a lot of people not all of them own consoles, and there are several places to drop off UPS packages for pickup and you can call to have them pick it up so I found it increadible that 6 other consoles were returned that day.