In regards to the xbox, when mine broke, we rang microsoft and they told me it was past its warrenty even though we still had a couple months left. I wonder how many xbox's they get out of repairing...
So what does this red ring do? I never got mine fixed so don't know the actual problem. I just unplugged it and left it. Its been like that for a few years now and i've never tried some of the games that i bought before it broke. :P