According to an article on Australian IT, Microsoft is recalling over 14 million Xbox power cables after reports that faulty cables had caused burns and fire damage.
The fault affects all units made for Europe before January 13, 2004, and units made for the rest of the world before October 23, 2003.
Xbox owners can check if their unit is affected by visiting http://replacements.webprogram.com/. It is also possible to order a replacement power cord from that site free of charge. Replacement cords will arrive in 2-4 weeks.
My own personal Xbox is affected and I’ve submitted an order. Fortunately it is still possible to use the Xbox while waiting for the replacement cord, and Microsoft recommends turning the Xbox off when not in use (which I do anyway).