Ahhhh i've had the same problem, what you do is call 1-800-4my-xbox talk to the represtitive the ask for ur info, then they ask you what your problem is you tell them rrod BUT before they SAY ANYTHING cut them off and start saying stuff like my friends ps3 doesnt break, his wii doesnt break WHY I ask of you is that the xbox breaks? Basically BE A HUGE DICK then ask to see there supervisor and you gotta convince him or her to give you a discount BE A DICK. It works, the first time i sent it in for repair i got like $20 bucks knocked off and free shipping so it ended up costing like $60, MUCH BETTER THAN $90.

For Fun: Buy at least two controllers, BUY A PLAY AND CHARGE OR A CHARGE STATION, have enough rechargeable battery packs(comes with play and charge).

Protection: YOU MUST HAVE A GOOD open area, put it side ways, and NEVER EVER TIP UR 360 WHILE ITS ON.

For Live: Buy a ethernet cord duh, buy a gold membership(if you buy the "special" ones it useally comes with a head set and an extra month of gold), you can get updates for sliver but cant play online.

YES

YES but not new releases

YES there called Microsoft points $1.25 is 100 points 12.50 is a 1000, etc.