"One Year Express Warranty on Console (Three Years for Three Lights Flashing Red). Subject to the terms and conditions of this Limited Warranty, Microsoft warrants to you only (the original retail purchaser) that, during the Warranty Period and under normal use and service, the Xbox® Console will substantially conform with the printed user instruction materials packaged with the Console. "

This states the "original retail purchaser", so regardless of time since new it sounds like you are not covered. Surely you investigated the stated warranty before you purchased the unit? It doesn't really matter what a CSR told you if you hinted that you weren't the original owner. It sounds like you were trying to slip one past the goalie here, unless I misinterpreted the post.