http://www.xbox.com/en-US/support/petermooreletter.htm

From this point on, the xbox 360 will still have a general 1-year warranty, but for reasons that display the three-red lights error, the 360 will be covered for 3-years from time of purchase. Furthermore, anyone that paid for repairs caused by three red lights in the past, will be retroactively reimbursed within the next coming weeks.