Paying for the repairs seems like a terrible idea -- you'll get a refurb unit which will probably croak on you someday as well. Either report it as a RROD, get your replacement and hope for the best, or buy a brand new unit (the new 360s are supposed to be much more reliable) and sell the old one for whatever you can get for it. It's worth the extra $ to get a new, more reliable unit and a decent warranty.