New 360 Locking Up

[TheSgtDK]

For some reason whenever I save and exit the Avatar customization area my Avatar goes missing under the "My Xbox" part of the Dashboard and then whenever i try to launch something new (Game/Marketplace etc) the Console completely locks up.

Anyone else have this issue and/or know how to fix it?

 

[finite]

Possibly the hard drive take it out and try USB storage.

 

[Kurisu Makise]

I started getting this on my new 360 and then a week later I got a red light of death with the e68 hard drive error, sent it back for replacement.
Hope the next one doesn't do the same thing.

http://forums.overclockers.co.uk/showthread.php?t=18177402