lol it happened to me TWICE! at first we panicked and called microsoft then like they sent us a package thing and we had to send it back. then we got it back along with a month free of xbox live. then like a week later it broke again, and when we caleld they did the same thing. but they told us that if it happened again, they would give us a new one! but unfortunately it hasnt happened yet.
Usually I'd say the main cause of the Red Ring is over-playing your XBox, so might I suggest you kids getting up off your asses and doing something active.
Same as Roadripper over here. We already had the PS3 and I hate Halo so we figured just keep PS3 which is 10x better also if your pissed off about the RROD watch this on youtube: http://www.youtube.com/watch?v=YzIAYszH_X4