I am on my 4th Xbox 360. I have a repair order in for the one that is currently in my living room, and I am waiting for the coffin to arrive.
My problems with the 360 have ranged from the red ring of death, to constant "disc is unreadable" errors (my current issue), to distortion of the audio and video. Even still, I love the 360, and I really believe that it offers the best gaming experience this generation, hardware failures notwithstanding.
So, this afternoon I installed the NXE, excited to try out the install to hard drive feature. My logic was that if the game is on my hard drive, no spinning of the disc is required, and so the system is working less and generating less heat. Until my coffin gets here, I figured this might make it possible for me to enjoy some gaming without unreadable disc errors.
Fallout 3 really puts the 360 through it's paces, and so I decided to start there. NXE installation completed, and I immediately installed F3 to my hard drive. I booted her up, and as of this writing, I have been playing for more than 3 hours without a single hiccup!!! I have a 120GB HDD on the way, and upon it's arrival and the return of my 360, I plan to install all of my games to the hard drive.
I think it's probable that the HDD install feature may decrease hardware failures across the board, and help extend the life of the 360 system. Me thinks Microsoft had that in mind when they implemented this feature......