NXE hitting 360s with red ring, freezing and sorta-sexy-avatar issues?

If you wouldn't mind looking up from that avatar creation screen for a second -- yes, we're aware of how much that t-shirt selection means about you as a person -- you might notice that your Xbox 360 is dead. At least, a few hapless souls on the Xbox forums seem to think NXE is to blame for such atrocities. Numerous folks are reporting variously bad red ring configurations, random freezing and a huge pile of blockbuster titles that won't just play themselves. The biggest problem is that Microsoft isn't universally treating problems caused by NXE as an "oh, our bad" sort of situation, and at least from anecdotes we're seeing has charged quite a few folks $100 to fix their freshly-out-warranty Xbox 360s -- not to mention separating them for weeks from their precious murder simulators.

[Thanks to everyone who sent this in]