Well, Jimzo, you were right. They just replaced the console instead of repairing the original one. I guess that's why the turnaround was less than 2 weeks as opposed to the suggested 4 weeks.
This, of course, meant I had to reinitiate the wireless connection and find my PC and folders again, but that went relatively smoothly.
Then I let it update the dashboard with the fall update. My access to files (music, video, pics) on the PC was retained thankfully. This was my biggest concern as way back when I initially got the console, getting the sharing right was a pain.
There was one unexpected setback, though. Even though the gamer profiles were there (since nothing had changed with regard to the actual HDD), my wife was unable to "resume solo campaign" on Halo 3. Before the console broke, she was in chapter 5. After setting up the new one, "resume solo campaign" acts as if it's going to pick up where she left off, but the game freezes on a screen with illegible text, then kicks back out to the menu (within Halo 3). She figured out how to restart the chapter, and she's satisfied with that. And saving her progress since is working fine. I guess the data on the HDD just got corrupted there. I'm assuming it has something to do with the fact that it's a "new" console and the old HDD.
My wife never complains, but she certainly enjoys playing games on the 360, so I was disappointed for her, fearing she'd have to start all over. We're both casual gamers by definition, but I play even less than she does. I probably play more arcade stuff than anything. Otherwise I really get the most use out of the console for it's media (downloading HD movies, streaming music, viewing pics, etc.) I'm a bit ruined for gaming anyway since I played through all of Gears of War. Halo 3 was a let down after that.
The updated dashboard is faster, although I hadn't really noticed it was very slow to begin with. Even though the resolution settings are the same as before, the text seems slightly smaller now. That's not a complaint, either. It looks pretty good.
One thing I do like about the new console is that it's much quieter than my old one. The old one had a build date of August 2006. Then new one has an October 2007 build.