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I bought my 360 on launch day, never had any problems with it until June of this year. My warrenty was up, so I tore it apart to fix it myself, fixed it, a week later they extend everyones warrenty, and then it breaks again. I just recently bought a new 360, about 2 weeks ago. To your question no I didn't have to buy live again. Just make sure that you keep your hard drive, and your profiles, and live profiles will be on it.
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