No, they don't overheat when placed propperly. They're computers, not VCRs, so some people put them in tight confined entertainment centers that have no ventilation. Anyone who's put a decent computer in a enclosed cubby under their desk knows, doing that will cause your comp to overheat. I've left my 360 on for 3 days at a time without turning it off and it wasn't even blowing out warm air. You don't need any extra fans. Just leave it in the open without anything up against it, and not sitting on carpet, and you're fine. Be sure the external power supply isn't next to it either, since that thing does heat up a little.
Some people had issues with overheating in the first batch of 360s because of a problem they had with the thermal paste they used on the CPUs. Ever since then people haven't gotten over it. Yours will be fine, and if it isn't, MS just upped the factory warranty to 1 full year. They pay shipping both ways and fully cover your 360.
You'll be fine though. Don't listen to the BS.
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