I have a Rossi 357 Snubby (Model 461).
http://www.rossiusa.com/product-details.cfm?id=138&category=1&toggle=&breadcrumbseries=
I have shot it a fair amount (roughly 1,000 rounds through it) and I love it. Never had any issues. My dad has a couple Tauri, and so does my sister in law. No problems with any of those either.
So here's the issue with Taurus/Rossi vs. say a Ruger or Smith.
Anecdotally, you have a higher chance of getting a lemon with a Taurus/Rossi. They all make lemons except for maybe handmade ones like Freedom Arms(even they may have an issue from time to time). The other issue is that if you do have to send it back for warranty work, it costs you more $$ for shipping fees, and it takes much longer to get it back (4-6 months vs. 1-2 months).
So my take on them, if you get a really good deal on one, go for it. If you are up in that $400 range, I'd spent a bit more and look at the other brands. I just picked up a new Ruger SP101 for $500, not exactly what you are looking for I don't think, but it gives you a price range difference. You may want to give the Ruger LCR a look. They are fun to shoot with 38's. With full power 357s, brutal. There are also some nice Smith & Wesson options out there, but I'm not very familiar with all their models, so I'll let someone else chime in there. Also don't be afraid to look at used Rugers and Smiths.
Here's a little Ruger customer service story for you. My dad bought a used Ruger Vaquero for cheap, knowing that it was broken(the hammer wasn't working correctly). He contacted Ruger to see how much it would cost to fix. They sent him a prepaid shipping box that he sent it to them in, and they fixed it for free. No questions asked.