The console news brand new. I'm not sure how to tell if it is refurbished or new though. Either way it's worked really well. I've noticed it is MUCH cooler to the touch after playing than the old one was. I'm happy with it so far but it took a month to get it all said and done.
Bear in mind that any content you downloaded from Xbox Live will now only play when you're online.
For example, an Xbox Live Arcade game whose full version you purchased on your original system would have played fine even if that console had been off-line. However, that same game will now only appear as the full version if the new/refurb box has an internet connection. Otherwise, it'll just be the demo.
Thank you, DRM!