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The vertical position causing problems is common. Microsoft never addressed that issue and still asked new buyers to keep it vertical. Some of the users dont have a problem with it, but many others get damaged disks.
Its a crappily-finished console.
That being said, it doesnt matter if you keep it horizontal or vertical. The heating up problem stays in the xbox either way. The only way you can prevent that is to let it have enough free space on all sides, and keep it in a well-ventilated room.
If you want to keep it horizontal, you are best advised to get rubber pads for it, to ensure space between the bottom of the console and the surface you have it on - table, glass-top, shelf etc.
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"If you gaze for long into an abyss, the abyss gazes also into you." - Friedrich Nietzsche
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