Ive heard that the xbox 360 has stopped working from some people is this true?

Yah, I haven't been able to play the 360 ever since it came out

Depends how you set it up really. If it's in a well ventalated area where the air can get to it, and the power brick isn't enclosed it'll be fine, as long as you turn it off occasionally . Otherwise, it can get really hot and yes, it is likely to lock up.

Every product that ever ships is guarranted to have one or two systems that malfunction. Bearing in mine that more than 6 million units have been shiped so far, one or two problems in one or two units isn't so bad.

So no, nothing is wrong with the system as a whole - No more than is wrong with a PS2 or Gamecube, or even Xbox.

And before you ask - The 90% of Xbox 360s catching fire due to faulty wiring rumor is not true. Honestly

I bought my son one for X-mas..The manager at the game store told me, That the hard drive in about 100 unit's had frooze up... If you take it out..turn it off and wait for a minute or two then put the hard drive back in it will work..If not then you can send it in and they will ship you a new one...But my son has played his for hour's and it's fine...I think it's like anything else, No matter how hard they try there is going to be a few bad one's made..But a hundred out of million's is not really that bad when you think of it..Plus x-box will make it good if your freeze's up.....