Originally Posted by
chazus
I actually have started repairing XBox 360s lately, so I understand your predicament.
There are a few things to note. First... The non-slim 360's are made terribly. Just... awful. It's no surprise you're having issues, and also the reason there are literally thousands on ebay.
If you can return it for a replacement, do it. It's pretty much a lottery. I bought mine used, and have had it for 4 years now.
If you can't get a replacement (under warranty), and feel DIY'y... a few things. There are often "XBox repair" people on craigslist, and many used game places do repair work. It's usually a Reflow or Reball process that can run from $30-$50. Another option is to open your XBox and add some small fans in front of the CPU heatsink, HOWEVER, I have heard some stories that adding a fan may cause it to have XBox Live issues, in that the XBox will see an added 12v variant as a mod chip, and get you banned.
I would try to get a replacement first, if it's covered. If it's not, just find the cheapest repair person. I've found that getting an XBox reflowed puts it in better shape than when it was made. Microsoft cut a LOT of corners to save money on these, which the consumer definitely feels.