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Nah, the 3 year extended warranty was for the RROD(3 lights). If it overheated i take it you got two red lights? Mine done that and they were charging £60 to fix it. I left it for a while 'coz it still worked but luckily (it seems wierd to call it that) i got the RROD soon after and got it repaired for free.
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Not exactly sure if they check, pretty sure you can claim RROD and they'll take it in and give you a refurb. i know some people that have done that when the only problem was the disc try.