Article from kotaku.
The crapped-out Xbox 360 frustrated consumer train continues! This time it's an employee at Texas-based Tek Republik, a full-service computer shop that also doubles as a gaming center. According to employee Chris_Tom:
"Yes, every Xbox 360 I bought at launch is bricked with the 3 red flashing lights. Microsoft despite the widely reported policy of repairing hosed 360s for free that were manufactured in 2005 refuses to do so".