[quote name='icebeast']I can answer this one somewhat, if you return your 360 to a store you have to return the harddrive with all your save data on it. I believe it is possible to get back downloaded content and achievements attached to an xbox live account but all your game saves are gone.
Thus in order to keep your game saves in the event you must return your console you need an xbox360 memory unit which retails for $39.99. Plus with Costco you have to factor in the whole membership cost. The 2 year XBOX360 warranty is a bit more expensive, but chances are you aren't going to need to send in your harddrive.
That being said I think the Costco warranty sounded fairly good but I don't have a membership to Costco and I didn't see myself going to one enough to justify getting a membership.[/QUOTE]
I had to return two 360s to MS, and both times I was told that I had to also send back my HD since mine was a premium unit. I actually went out and bought a mem card so I wouldn't lose my game saves before I mailed it back.
This was back around the launch -- in Nov and Dec 2005 -- so maybe their policies have changed, I dunno.
So I would still tell people that the $40 Costco membership fee is worth it, even if they wouldn't do much shopping there. I understand the 360s are becoming better, but I'm on my fifth system, so I'm still a little wary. I've returned two to MS, and two to Costco (I sold the replacement for my second system on eBay back in January so that I could re-purchase it at Costco). Although I do understand buying it at Target with a 10% discount. That adds up to a decent chunk of change.
But still, it's very comforting to be able to walk into the store and walk out with a new system the same day instead of possibly having to wait up to two weeks for a refurbished system from MS.