I can say with almost no doubt that the intercooler is the problem, everybody I've heard that's had one has got the ROD...they just don't work properly...they say it cools down your console, but in reality, it heats them up...or causes improper power fluctuations...both killing your 360...

so after you get the warranty return...i'd scrap the intercooler...or mod it to use a different power supply

the intercoolers that nyko makes now are better because they dont have the plastic connector. i bought one and its a charm. and to debug the towel thing... it heating the innards of the 360 up to the point where it resolders it self. ive seen it done with a heat gun around the CPU/GPU area and it works.. so im assuming this is the same thing.

so question, to everybody that sent their 360 in to microsoft itself for repair or just another console. have you got it back yet? and has it repeated the circle of death again?

My understanding is that the way the components are seated on the motherboard is a basic manufacturing process error, which can cause overheating. I think about 20-30% of the units fail.
Microsoft has taken a writeoff of over a billion to replace the defective units. (and fired some of the engineering managers)
I would definately consider having them repair it (which may mean getting a new motherboard), especilly if i planned on using it alot.