I know this is an older topic... but "most" of 360's get RRoD? That is quite off base. There was never a majority of 360's failing. The highest accurate predictions were in the 30% range, and still those are quite high to the actual original 360's failures. Please don't scare him off. The new ones don't RRoD (except for the normal failure rate of all technology) and only a small amount of older ones still RRoD. Mine is an older version, I've had it for nearly 2 years, and nothing has been wrong with it at all.
So, before you hear from experienced and knowledgable 360 owners like myself, don't go thinking that all 360's fail, because that is so far from true. You will be absolutel fine, and you don't need an extended warranty because all Xbox 360's are covered with 3 year warranties from Microsoft.