
Of course, rumors like this have to be taken with a truckload of salt. Not many people immediately hop to the forums to scream to the world about how their update didn't cause any problems and is working beautifully. I installed the update myself with no catastrophic failure.
But at the same time, there are probably plenty of people who did suffer some RROD after installing the update. This doesn't, however, mean that the update caused the system failure. Xbox 360s brick more often than a Ben Folds Five concert, so it's entirely likely that the time just after the update installation was just the natural end of the road for some people's consoles.
Still, Microsoft is looking into the rumor. If you've had any odd problems, they encourage you to contact their tech support, which I'm told can be reached by shouting "Help!" seventeen times at Windows Vista's speech recognition software. It's a little Rube Goldbergian, but that's Microsoft for you.
Source: Shacknews
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