Time for a new Xbox

I tried GH2 again yesterday and disaster struck. After it crashed again, I restarted and got the dreaded "flashing red lights of death".
FRLD indicates hardware failure and was common among Xbox 360s purchased around release time. Units that were manufactured later are not nearly as prone but still fall victim occasionally. Microsoft responded by extending the warranties to one year. I never had a problem before this week so I thought I was safe. Unfortunately, judging by what I have seen in forums, something about GH2 can push otherwise healthy Xboxs past the breaking point. How Red Octane will respond to this problem has yet to be seen.
Anyway, my Xbox is still within the warranty period but I have a better idea. I purchased it at Costco which guarantees most items for life. I can get a full cash refund which can be applied towards the Xbox 360 Elite that hits shelves at the end of this month. The Elite has a 120GB drive (as opposed to the original 20), HDMI output, and comes in a cool matte black finish. I will still return GH2 but I want to wait a bit and see what Red Octane has to say. There may be a recall or a downloadable patch. Given the frequency of problems, I don't think Red Octane can ignore it.