Equip the following equipment: gold helmet, a frost chest plate, and frost legging. Also have the black and blue flame dye on all armor pieces. You will receive special vanity effects, which is a reference to Red's armor as depicted in the 1.2 Random Happenings trailer.
If you have a friend with Xbox Live do the following to duplicate items in multiplayer. Join a friend's game and place the items you wish to duplicate in a chest. Once done, quit out to the dashboard without saving. Restart the game and return to your friend's world. Retrieve the items from the chest and you'll find that you now have an extra set. Save your game and return to the main menu, then repeat the process if you want.
Each randomly generated world comes with at least one floating island, which contain a chest with unique loot and are interlaced with gold and silver ore. Finding a floating island is hard as the altitude depends on the size of the world you created, but building a "sky bridge" can help. On small worlds, building the bridge at about 200 blocks above sea level will put you within sight of an island. Keep an eye out for vines floating in the middle of the sky, as that's the bottom of your island.
In both the PC and Xbox 360 version, there are two different save files for Terraria: Characters and Worlds. To duplicate an item, place it into any chest and save your game. Once done, go to the storage area and find the Worlds file for Terraria. Copy it to a USB device, then go back into Terraria and remove the item you want to duplicate (you can actually do it with more than one item). Save the game and exit, then go into Storage and copy the Worlds file from the USB drive onto the hard drive, the system will ask if you wish to overwite, say yes. Go back into the game. Since the Characters file saves everything on your character and the Worlds file saves everything else you will notice the item you wish to duplicate in on your character and in the chest. This can be repeated as many times as desired.
Every night time stars fall from the sky. Collecting ten of these increases your maximum mana. On normal terrain this can take a long time and can be a risky in pitch-darkness. By creating a Sky Bridge (by making a ladder around a hundred or so blocks in the air and laying down stone or dirt in a straight line), you can create a long stretch of land for the stars to land on. With a speed-increasing item such as Hermes Boots or Necro Armor equipped, you can travel the length of your bridge while collecting stars very easily. Zombies will still spawn on the bridge and you might get the occasional harpy or demon eye, but you won't have to deal with rough terrain, chasms, water or anything that spawns from the corruption.
The Eater of Worlds is a difficult boss if you're not prepared. A good strategy for taking it on is to build a large enclosed arena a couple dozen blocks above wherever you plan to summon the boss from. This will keep smaller enemies out and the gap will give you enough of a warning to allow you to avoid most of the boss's attacks. Bring a lot of Shurikens if you don't have any flail weapons yet, as they will deal the most consistent ranged damage.
Everyworld has an Underground Jungle and a Dungeon swarming with very difficult enemies and very valuable items. They are found just before the "ocean" at the edge of the world. If you walk in the same direction long enough you will come across one of them. The other one will be at the opposite end. So, if you walk west and find the Underground Jungle, to the east you'll find the Dungeon. Take strong armor, plenty of potions and maybe even a friend or two as they can be quite difficult.