UPDATE:
COD 2 started freezing as well. Got some technical support from MS. Got the system up and running again but froze after about 15 mins of play. Started getting red lights on the console.
called them again and they advise me I'm goign to have to send it in for repair. I'm just outside of my warranty but the good folks at MS said that i'll be covered under warrant.

lets just hope they stand by their word and all is taken care of