For thoes who haven't had a chance to update their 360 to the newest version might want to renthink that over. Lets see what gamers have to say about this mysterious update issues.
I'm having real issues with Oblivion at the moment as well. Everything is taking 10x longer to load, even the main menu etc.
After updating I played the outfit for about an hour, halfway through playing an online game it froze. When I turned the console off and back on, I get no video output and a red ring of light. I've had this console since last November and never had any issues.
Ok, just had the freezing problem again when trying to play battlefield 2 demo. Turned the system off and unhooked the hard drive. Played graw for about 2 minutes in single system multiplayer, by myself. Froze after about 2 minutes. So not the hard drive, and not an overheating issue. At least I'm not having the 3ROL issue that some people are having, but I think that it is definently an issue with the dashboard update.
Although microsoft claims that the failure rate is below 5% their are some very mysterious issues occuring. You might want to watch what you do after you update to the new softare version.