So the other night I was playing Fallout 3 and the graphics started getting weird. There were red vertical bands where shading would be and when I went into VATS mode the highlighted body parts looked like TV static. I thought I would power cycle my XBOX and hopefully that would clear the problem - wrong!
Came back up with an error E74.
So I bought a new one last night and will ship the broken one off to Microsoft to get repaired.
Once I get it back I will sell it on craigslist.