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You seem to have some bogies on your case.

that would be when someone dropped a jar of pasta sauce right next to my xbox and it asploded.

I thought I had cleaned it all off.

Thats what happens when u buy the arcade version.

That same shit happened to my Gamecast.

I got red ring of death right after my the MS extended warranty ran out =-(

So i got a PS3 instead.

Sounds like someone needs to play more P99 and less Xbox.

:( Hopefully it is still under warranty. My 360 went about this same time 2 years ago, but luckily it was under warranty and they replaced it with a new one.
Just to give you an idea of how often those damn things die; I have 4 close friends who live nearby who have 360s. Out of the five of us, 4 got the RRoD within 2 months time. A buddy of mine, who has some anger issues, got so pissed off he removed the HD and then took a hammer to his red ringed 360. When he told me about it, I had to try not to laugh as I informed him it was still under warranty :D

The towel trick is damaging to the pulse width modulation circuit. You're better off doing the VGA resolution reset and having it warranty serviced when you can, or if your warranty is dead, popping it open and installing a heatsink on the memory grid. You should use pennies from 1982 or earlier due to the higher copper content. Most "DIY" guides for the penny heatsinks are in error, you don't want to stack them directly. You don't want to use hot glue, or electrical tape either. You want to mix heatsink compound and epoxy together, and space the top two pennies off center for maximum surface space exposure. Low profile BGA heatsinks are a better idea than pennies. Find some geek at school to do the repair for a six pack beer or something.