Warning MS just changed the RRoD with the last firmware update to two reds two greens and will not honor the RRoD warranty if you get the new RRoD. Some tech guys noticed the change recently. The old RRoD still happens but it is for only one problem not a general failure any more.
There have always been multiple light patterns. They are codes that tell the techs what the error is. Mine had the three red rings since the last firmware update. As for your cousin's anecdote about multiple failures, it seems he has had some unusual bad luck. I game with about nine different Xbox 360 owners. Between us, three have had the RRoD, which is directly in keeping with MS' numbers. Of those, all were prior to the new 65nm chips and new heatsinks. Of the three of us that had failures, none have had any issues with our replacements. Of my friends that have the new 65nm chips, not one has failed.