Systems PS3 - $500 PSP: GoW bundle - $200 DS - $130 19' LCD TV - $300 Cheap Refurbished Computer - $200 Total = $1430
Games PS3 Guitar Hero 3 - $90 Metal Gear Solid 4 - $60 Call of Duty 4 - $60 Resistance - $60 Elder Scrolls IV - $30 DS Castlevania: Dawn of Sorrow - $20 Castlevania: Portrait of Ruin - $35 Pokemon Diamond - $35 Clubhouse Games - $20 Final Fantasy III - $20 PSP Final Fantasy VII: Crisis Core - $40 Grand Theft Auto: Vice City Stories - $20 Monster Hunter Freedom 2 - $20 (bought on sale) Computer World of Warcraft - $20 World of Warcraft expansion - $20 Guild Wars - $30 Total = $580
Only get a 360 if your a hardcore gamer and you know that there are cant miss games coming out for it. I wouldnt worry about the RROD, it might die on you once, but its pretty rare to get 2 that will die on you (I only had RROD once). The 3 year warranty is nice so you shouldnt worry about that.
What I would do is make a list of must own games for the 360 that are out now, and make a list of must own games that arent out yet. Exclusives only, that way you know for certain if you need it. It would be a shame to spend all that money and not get that much use out of it.
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