Hi, our kids have a Xbox360 and we got them a Kinect for Xmas, this machine we purchased 3yrs ago (Arcade model) so reasonably recent.
I had heard of hardware issues in older machines with the red ring of death, but understood our generation of hardware was better in this regard and until this xmas day this had been the case with no issues at all.
Come Xmas day, kids plug Kinect in (using supplied separate power supply and USB Y adapter and rear USB port) two hours later playing the supplied adventure game, red ring of death, Q3 indication which I understand is general hardware failure.
Quick search on the internet and find the following link.
http://www.guardian.co.uk/technology/gamesblog/2011/jan/06/xbox-kinect-red-ring-failure
Anyone else experienced the same, our current situation is that we are up for a $135 service fee.
Cheers
Cyril