I got the update early enough to the point where M$ released a fix after I just did mine. Had I waited I don't really know what the outcome might have been. I ran the "Fall Update" on Thursday night and after that the unit seemed to play fine. Then as the wekend got closer I was trying to play Gears on Saturday night and it kept locking up. My xbox has had very little play time. Most of the it just sits on the floor and looks pretty as I got one of the green/black xbox360 mod cases. When Sunday came around I can't even get into the dashboard. I checked the error code guide on google. Comes up with 0022 GPU Error. Makes sense to me since when it locks up I get white scrolling dots all over the screen and I can only play for about 5mins until it happens again.
I'm now $300 in the hole on my credit card but the good news is after talking to my local EB Games store manager they will over me $180 in store credit for my broken one. The unit has to be in good cosmetic shape and have all the serial numbers on it. So when I get my new MS28 drive up and going, and tested I'll be putting my old one back together and taking it back to EB.
I have been reading on many boards for the past couple days. The Fall Update is what nailed my system. I know M$ won't fix it so I went to EB and grabbed a new one. Now I have the MS28 sammy drive and I'm waitng on a card to come in on Friday. The whole thing has been one big nightmare. I don't even use live and I had no reason to sign on and update my system but I did and do I ever regret it.