The first time I got the Red Ring of Death was when I had lugged my 360 over to my friend's house to play multiplayer Gears of War. We had the scart connection set to 'HDTV' accidentally and it wouldn't turn on for a while, before we realised what we were doing wrong. At some point, I got the Red Ring, but then it randomly started working again, after a while.
The first time my 360 truly failed, it still had the standard store warranty, so I brought it back and they told me that I could either get another one free of charge, or I could pay €50 and upgrade to the cooler-looking Elite and get a free game, so I did this.
Second time it failed, the store warranty had run out and I had to go through the rigamarole of UPSing it off to some Microsoft subsidiary in Germany, who fixed it and sent it back to me with a month's free Gold subscription (that didn't work). All for €10. It's worked perfectly since then, but unfortunately, whatever happened to it when it got the RROD seemingly also burned a huge, circular scratch into my copy of Guitar Hero: World Tour, which is really annoying. I didn't discover this until well after I got my console fixed, so I don't think there's much point in contacting Microsoft about it, now. At some point, I'll rebuy a pre-owned copy of the game.
I don't think I know anyone else who has had to bring their 'Box back.