Around these halls, people love rumors in the same way that we love American Idol. No substance or meaning, but crazy fun to watch (especially when people make fools of themselves).

That's why I'm writing this post. An homage to the most foolish Xbox 360 rumors I've seen. 
Here we go:

10. Kameo is a kid's game. 
 Not true. It's got a T rating. You can impale baddies with the spikes on your own back.  Impale!

9. Xbox 360 is being recalled. 
 There is no recall. Period. Return rates are actually lower than consumer electronics (CE) industry averages.
 
8. Microsoft is intentionally witholding product so as to build artificially high demand.
 Seriously. Think of the revenue hit we'd take if we actually did that.

7. Halo 3 is finished, and just sitting in a warehouse somewhere (in Poughkeepsie)
 See #8. Actually, come to think of it: we haven't announced anything about anything of which you claim we've announced or finished, as it were. 

6. ____(insert name)___ is an alien/getting fired/fighting with _______ (Robbie Bach, Brian Lee, Peter Moore, J Allard, etc.) 
Nope. Peter's my boss' boss' boss, and I just want to say, in case you're reading this: "you're great!"

5. Everyone at Xbox is evil (or a robot, or is money grubbing, etc.)
 Dude - we're gamers. We're just trying to make a better games and entertainment than the other guy.

4. We stopped working on backwards compatibility.
 Still going.

3. We chose Barbie’s Horse Adventure first, because we didn’t want PGR2 to be BackCompat
Nope, some titles are just bonus because other titles work.

2. Sony will launch a broadband service better than Xbox Live.
 A big, bold claim. Two words: Emotion Engine.

1. Bungie has no plans to take over the world
Not true. Just look at their seven step plan.