Read my blog about the playthrough on this game.
I played through the entire game with my wife as co-op and our game froze only after a replay through on veteran, but I think the Xbox 360 was too hot. It had been on for more than 12 hours straight. But if you have space on your HD, you should just install the game to the HD.
For those of you who are thinking to get this game, just rent it. 5 days or however long your local rental place has, it's enough to play through the game on any mode, including veteran.
However, it's way more fun playing veteran with unlimited ammo. We were trying veteran at first (my wife and I) and we got our asses handed to us because frankly too many zombies in areas and not enough ammo or even good enough weapons. A few places all we could do was use our knives. Bad.....
But this is the first RE game I've ever gone through in a single weekend. Once you play through the game, try putting on the retro or classic video filter. Black and White is tough as rabbit shit when playing in that mode.
Btw, anyone like that clubbin' costume that you can get with Sheva after you complete the game? Looks pretty funny but my wife loves her hair style.