It's one of the early Falcon chip systems. It's not RROD, it won't synch with the controller. MS Support says it's a hardware issue and was otherwise not very helpful, and even a bit insulting. After I cool down I may get one of the new ones, should be a lot more reliable with the SoC internals. Until then I have plenty of PS3 games to play. Fable III coming out may get me to finally replace it.
You know if you tell them it RROD they will fix it even if it has other issues ;-)