According to a chap called Dean Takahashi, who writes for the Mercury News, Microsoft's next iteration of the Xbox 360 with a 65nm chip, is codenamed Falcon.
It seems like the heatsink fix just isn't enough to cope with the current crop of problems with the Xbox 360, which has already costed Microsoft and additional $1 billion to try to "fix".
It's no wonder that Microsoft is in a hurry to bring out this new, cooler running version of its console. It should also be a lot cheaper to manufacture, as you get a lot more chips at 65nm compared to 90nm.
On a side note, the Xbox 360 Elite is apparently slated to appear in Europe on the 24th of August according to sources quoted by Nordic Hardware and it's expected to retail for €479/£349.
You can find the Mercury New story here and the Nordic Hardware story here