Last month I went through the process of contacting the BBB, getting contacted by Microsoft, having my repair fee waived, sending in my console, and getting my console back to me.
I had the Halo Spartan Edition 360, so they did a same console repair. The sticker on the back has changed to say that it was repaired.
...However, I'm still having the same problems. Despite the repair, I still can't load Pillar of Autumn at all or install Reach to my harddrive or play most of Firefight.
I'm so bummed right now, words can't even convey.