Well, the bad news is that, according to
Eurogamer (via
Joystiq), Mircosoft's new spring update has the potential to kill your
Xbox 360 console. The chance is allegedly tiny, but if you're unlucky enough to experience this fault, your console will cease to be able read new retail discs. The problem seems to be the update's new anti-piracy measures that don't play well with all the different DVD drives that live in the various permutations of the Xbox 360. Apparently this has already happened (
found on reddit) to one of the spring update's beta testers.
However, there is good news. That beta tester received a brand new
Xbox 360 S with a 250gb hard drive FOR FREE, and once the update goes public, we'll all get the same deal should it happen to us. I guess a lesser bit of good news is that Microsoft is out ahead of this problem, and are able to detect the issue over Xbox Live.
So, all in all, I'd say it's a fair trade. My 360 is in the last year of its warranty, so I could use a new one.