I finally took the plunge and got an Xbox 360 back in October of 2006. I'm not a heavy gamer, but really enjoy the system when I can find time to play. Anyway, one of the first things I did was pony up for the 2 year extended warranty ($50 USD plus tax). I just wasn't comfortable with the risk of losing a $400 system after the standard 90-day warranty expired.
Fast forward to today. In all the excitement and press about Microsoft's new 1-year Xbox hardware support policy, no one seems to have reported on the fate of the previous program. Not being one to sit around and wonder, I called Microsoft Xbox support over lunch today and found out. After about 10 minutes on the phone with Xbox Support... I had my answer: Anyone who purchased a 2-year extended warranty will receive the full benefit of that program. In other words, my 2 years won't start ticking away until October, 2007... meaning I'm protected from any Xbox 360-related repairs until November of 2009.
There isn't anything official on xbox.com regarding this point yet... so you'll just have to trust me for now (see update below). However, the rep said we should see something posted in the near future. My guess is that it will appear on the Xbox 'Press' page at http://www.xbox.com/en-US/press/
UPDATE: I received some snail mail today from the Xbox warranty group. The updated expiration date for my 2-year support contract is now January 2009. So, not only did they reset my 2-year warranty to start after the free 1-year warranty ends (as reported above)... they also gave me 3 extra months as well. Thanks guys!
Cheers, and happy gaming!