
My son wants an Xbox 360 and he's washing cars and saving to buy one (he, at this point, has more disposable cash than I do and he's 12

I think I would prefer a PS3 mainly for the Blu-Ray, however that's a weak reason as BD players are getting cheaper and I have DirecTV HD DVR so probably won't even use it so we're back to the 360.
That said there are several packages at several price points. My main question is "Which 360 kit to buy?"
The "Arcade" is the cheapest and comes with an initial set of so-so games, however there are also:
- Deluxe - 20G
- Platinum - 20G
- Elite - 120G
I've read about the "Red Ring' , the power supply, the overheating issue, and the 90nm vs. the 45nm and have come to understand that no recalls or other attempts were made by MS (other than extending the warranty in specific cases) to get the "bad" units out of circulation. To my understanding the "Arcade" is the newest (read, "most fixed") but has no internal HDD, I can put together a PATA 250G in a USB enclosure.
He's looking at getting a refurbed "Core" unit from GameStop but I am thinking about going half with him so he can afford a new (and hopefully less risky one).
Since I'm a PC gaming elitist snob I would appreciate some advice on this
TIA