Still on the phone with 18004myxbox. They have been getting a lot of calls. Since I guess im one of the lucky ones whose xbox only freezes and doesn't give the 3ROL they said that the will fax the info to MS (who am I talking to?) and that another update will fix the problems.
To the previous poster: I see your point, most of us have the same hardware(Core, Premium, HD, no HD (There are even different HD's), Memory Card, dvd drive), but what about software? Flashing from the dashboard, flashing from a game, watching a movie, etc. There are enough variables that it could be a an update problem.
They said that another update will fix the problem, but I do wonder what damage has been done and whether the update will actually fix anything or if they are blowing smoke up my shorts.