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I read a forum on another page where a person indicated that there may be ventilation issues for the Xbox 360 that can be exacerbated by having the power unit (the power cord thing that lights up btw yellow and green) too close to the 360 itself.
Hopefully you can alleviate some problems by moving the power unit.
Cheers!
My Original 360 is still going strong (2 years now) and no RROD ( I probably just jinxed myself).
Anyway, my 360 used to freeze up all the time in Oblivion as well as most other games I played. It would literally freeze up at least once a day. It didn't matter if I was playing a disc, arcade game, video, or browsing the dashboard. I moved it sideways and put the power brick on another shelf in my entertainment center and haven't really had a problem for quite some time (over a year). Maybe yours just needs ventilation and such?
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