New desktop hangs, freezes, and reboots randomly.

Per the "Note Before Posting", here is my data.
Product Name/Number: HP Pavilion HPE-H8-1234 Desktop
Operating System: Windows 7 64-bit
Error message: None
Changes made: None. Out-of-the-box failures. Initial setup.
I just purchased an HP Pavilion HPE-H8-1234 Refubished Desktop (included with a 90 day warranty from HP). It arrived at my apartment yesterday. During the initial setup (within 5 minutes of turning on the machine), the computer hung, froze, and then rebooted itself. I spent much of last night updating the OS via Windows Update and repeatedly had the same problem. This probably happened 8 or so times over the course of an evening.
Are there any known issues with this computer that can be easily solved?
I think this may be a defective product.
Any information or help on either fixing the issue or returning the desktop would be appreciated.
Thanks in advance!

Follow-up, in case anyone in the future has similar issues and receives no support on the forums.
After three days of misbehavior, this computer is on its way back to HP.
Upon getting home from work the second day, I found the computer to be in a state where it had tried to reboot itself but could not make it back up. It was at the initial startup screen with three errors.
PXE-E61: Media test failure, check cable
PXE-M0F: Exiting PXE ROM
ERROR: No boot disk has been detected or the disk has failed.
Per chat request, they had me run a BIOS-based "DPS Self-test" on the hard drive. This was comprised of two tests, the first one relatively short (10 minutes or so) and the second one rather long (2 hours). The test came back as successful.
Next chat service had me use System Recovery to restore the hard drive to the factory state is was in the day before, when I got it. This succeeded, but shortly thereafter the computer exhibited the same problems. Random lockups, crashes, and reboots. Sometimes able to recover back into Windows, sometimes not.
I then emailed HP support, and they asked me to check the cables by removing and replacing them from the hard drive. They sent me full instructions on how to open the computer, remove, and replace the hard drive. This did not resolve the problem.
After this, they had me reset the BIOS settings. This too did not resolve the problem.
Upon reporting these results to HP via email, they instructed me to do the BIOS DPS Self Test and System Recovery. I had already spent nearly 4 hours the previous night doing these things, but I don't think the email support representative had read the chat logs I'd mentioned. After informing email support of these things, they agreed I did not need to do this again and began the process of setting up a return for the desktop.
It looks like it will take 3-5 business days for the shipping supplies to arrive, then the time for me to ship the desktop back to them, then another 5-7 business days of repair at HP, then the shipping time thereafter for the desktop to be returned to me. I therefore estimate the total time between my original purchase of the computer and me receiving a working desktop to be on the order of 1 month. Frustrating indeed, but I guess that's how the cookie crumbles.
Either way, I'm looking forward to having this new computer up and running. It's too bad this one ended up being such a lemon, but once it's working I'm sure I'll be a happy camper.

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