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Hmmm... mine died this weekend too. Must be related to the site outage somehow... LOL. I have a backup Dremel I bought some time ago (I seem to kill these little wonders frequently, so I keep a spare on-hand) and will be sending the dead one back to Dremel for repair/replacement (costs $25 - $30 for most older corded models... see the customer service tab/service center on the dremel.com site - prices are in the FAQ).
The "older" corded variable-speed dremels seem to have a fairly low duty cycle compared to the "really old" single speed Dremels I owned 15+ years ago, but the variable speed features are nice. (I haven't tried the cordless Dremels yet as I never have been very pleased with cordless tools in general -- seems the batteries are always dying and replacements are often as expensive as the tool itself.)
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Anybody else find they crap out realy easy?