There are a lot of reports of Xbox 360s overheating, or suffering from the fatal "Red Ring of Death." There are some preventive measures to reduce the possibility of an Xbox 360 failure.
PCWorld did publish 6 steps to avoid getting the Xbox 360 Red Ring of Death.
1. Keep it off the carpet
On the carpet it collects a lot of dust & keeps vent-holes blocked.
2. Air flow is everything
Place your Xbox 360 in a good ventilated area & not in a small cabinet.
3. Clean it
Don't let the vent-holes collect dust, otherwise the air flow gets disturbed.
4. Let it chill
Don't play games for several hours, just let it cool down after a few hours.
5. Turn it upside down
Only use your Xbox 360 horizontal, because if you use vertical vent holes gets blocked (a major construction flaw)
6. Buy a newer model, because the latest models have better cooling (not a real solution)