Please don't be intimidated. There are a lot of people out there in the gaming world especially who say a lot of things about... a lot of things so if you heard any evidence about processor burn out there then try not to fall into the trap of FUD (fear, uncertainty, doubt). What people are saying here is correct. Processors can burn out slowly over time or they can burn out in a matter of 3-5 seconds. Burning out that fast occurs only if you don't have any cooling on your processor whatsoever. Even if your heatsink is improperly attached to the processor, you can still run it. Burning out slowly over time can happen basically if you attach your heatsink improperly. I think some people are still stuck on what happened in the past with AMD processors, so that's why they forget that the Palomino/Thoroughbred is an entirely new line, and dissipates no more wattage than any Intel CPU out there.
I think your friends have every right to be upset about AMD products, especially if one burned out on them. It sucks to lose $100-200. On the other hand, next generation AMD motherboards are going to be required to have thermal protection. Right now, there are only a few mainboards which I know have it. For the KT333 chipset, Asus has it, Soltek has it, and MSI has it. Gigabyte might have it too with their GA-7VRX/P 2.0. I would simply advise you get one of these mainboards rather than going for Intel right away. In the retail sector, Intel is mainly for people who want to overclock. If you buy an Intel and don't overclock, you've wasted your money, because Intel processors cost two times (2x) as much as AMD processors.
In other words, if you are freaked about frying your CPU and <i>possibly</i> wasting all of that money, get one of these boards:
MSI KT3 Ultra 2
MSI 745 Ultra
Asus A7V333
Asus A7S333
SL-75DRV5 (and the one mentioned above if it has overheat protection)
More are being added to the list, as AMD recently made this a necessary requirement for all mainboards. If you buy an AMD processor with one of these mainboards, I guarantee you will have the same exact operating quality as if you were using an Intel system. And if you don't plan on overclocking, it will be much cheaper too. At the end of the day, if you are still worried about processor burn out, go ahead and buy an Intel.
This little cathode light of mine, I'm gonna let it shine!