I called 1-800-4-MY-XBOX and spoke with the rep about what my choices were. He said that the price is going to be $59.90 for 2 years on my 360. I told him I was going to use a credit card to pay it. When I said that, I noticed that my registration card that came with my Xbox had 2 different prices. One said $59.90 if I pay by Money Order or Check. The other said $49.90 if I paid with credit card.
I asked him about it, and he said that was if I sent it in, I would get the lower price using a credit card. I asked him why I couldn't get that price over the phone. He couldn't give a good reason, so he asked a supervisor. He came back and said alright, we can go ahead and give it to your for the $39.90. I asked myself, wtf, now we're $20 lower than the orignal price I thought I was going to pay. I didn't say anything, he gave me the confirmation number after I gave him my credit card info, etc.
So, I managed to get my 360 2 year warranty for $39.90+tax. I just wanted to share my experience for those who may be purchasing it soon. Make sure you tell them your price that is listed on your registration card.
Also, just and FYI, the warranty IS TRANSFERRABLE to another person or another console serial #. He said all I have to do is send a letter stating the current owner / console information and the future information to an address he gave me. Good to know in case I sell this one for a new model or something down the road.