Xbox customer services have been awful in my experiences, although I have have only even spoken with Xbox Live services. They could learn a thing or two from Sony who have been very helpful on the several occasions I phoned them. They're superb.
Never had a problem when phoning Microsoft, they couldn't have been more helpful.
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Got an elite in the end on a mobile phone contract thing and its been perfect so far! Ive got 3 Xboxs in my room a Wii and a 60Gb PS3 which is still going strong from launch. Been meaning to try some better x-clamp methods on them.