Well since I'm one of those lucky buggers who never had any Xbox failures (2 consoles) I was still curious and decided to go read the warranty guide anyway.
Interesting indeed...here's some quotes.
Xbox 360 - Volume 2 - Warranty
Extract from page 3
Extract from page 4
So according to my knowledge and reading this material and can't see why you can't demand the retail store to resolve your problem and also I don't see 60-90 waiting period feasible and therefor I can't see why a full refund should not be provided.
Interesting indeed...here's some quotes.
Xbox 360 - Volume 2 - Warranty
Extract from page 3
Microsoft guarantees that the Xbox Product will:
(i) perform substantially in accordance with the instruction manual; and
(iii) be of a standard and quality normally expected for goods of its kind.
Manufacturer's Guarantee
Note: You have rights as a consumer under your local law to seeks a guarantee from your Xbox 360 retailer. This manufacturer's guarantee does not affect those rights.
Extract from page 4
Remedy
(i) repair of the Xbox product; or
(ii) if repair is not feasible, replacement of Xbox Product; or
(iii) if neither repair nor replacement are feasible, a refund of the price paid for the Xbox Product.
So according to my knowledge and reading this material and can't see why you can't demand the retail store to resolve your problem and also I don't see 60-90 waiting period feasible and therefor I can't see why a full refund should not be provided.