Interesting, i worked for Dell EMEA XPS about a year ago, this particular model had a video card issue and its well known among the customer support. Not sure why any tech support from dell denied it. As for the lights they are called diagnostic lights, all dell laptops and desktops have them, In laptops they double up as num lock caps lock etc ... in desktops u will have them numbered on the rear of the desktop or in the front. The way the lights come up is a error code which tech support uses to diagnose(for both desktop& laptop). I am not sure about US tech support but normaly when i worked in EMEA region tech support a typical M2010 call lasts about 8 mins with ending up in replacement of the video card 12 mins in case of the motherboard. You can hardly remove anything without some serious tools on this machine so as tech support it is very tricky to diagnose the issue, there used to m2010 kits(includes motherboard/video card and few more) which would be sent out each time customer has a problem. With XPS tech experience this issue was ranked 2nd after the issues with the xps 1330(NVdia GPU problems) as the most frequent issue, infact at tech support almost 90% of all m2010 calls ended up in replacing the video card . As far as getting a new machine, yes Dell had policies for that if you had more then 5 techs coming in for the same reason and if u really insist they can give u replacement but that stopped a bit after the economic crisis last year when Dell became a lot more stricter in giving out replacement computers.