I purchased an xb360 from target in oct,2011 with a 2 year replacement warranty. in july , 2012 the xbox went bad.
I went to target for a replacemnt and was told that target would not honor the replacement . their policy was to have the consumer send the unit back to microsoft within the first year for repair. they are really selling a 1 year extension warranty and even after the first year they will still not replace the unit, but want it sent in to their repair service.
Best Buy does sell a replacement warranty and will actually replace the unit at the store. my advice, stay away from target for electronic purchses.