Yeah, I've read online that too. Mine was still within the 1 year warranty and I bought the extended warranty too. I did some research before I bought it, and all signs pointed to an inevitable failure. So the few extra bucks seemed like a good investment!
I downloaded the Forza 2 demo and it looks pretty good. I guess I should get the wireless wheel controller too. I have been playing Oblivion and just bought the Shivering Isles expansion pack. Oh well, I guess I'll have to fill my spare time with car stuff!