Ive got mine horizontal and stuck some little rubber blocks to the underside to lift it of the surface a bit to aid airflow under it. Seems to run a bit cooler now
It really doesnt matter which position you have the xbox in but horizantle is my prefered position for the xbox360. when i had my xbox360 verticle, one of my friends accidently bumped into it and just tipped it a little and the game scratched beyond working.
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