Apparently Red Octane discovered the problem in their guitars and fixed it with a software patch this morning. On Red Octane's website they're saying that as of 4 AM pacific today a patch is available via Xbox Live that "should resolve the situation where input from the whammy bar was not always recognized."

Red Octane admitted a week ago that two models of their Xbox 360 guitars were "defective." This followed a week of wannabe guitar heroes discovering that their axes were having problems with their whammy bar, strangely the whammy defect seemed to have a higher prevalence in the first batch of guitars with a 95055 on the box. Red Octane says the situation is fixed now. This doesn't explain the sticky yellow fret button or the complaints of "shocks" by some people, but the original whammy bar issue seems resolved. People with "defective" guitars, after downloading the patch, is it fixed?