sounds like its on the way out

Best you can do is try selling it to a Gamstop telling them you're not sure if it works well or not, get the store credit and pick up a refurbished system.

more 360 trouble
 

bought halo 3 the other day and the story mode doesnt work anyone now how to fix this. Also my 360 always classes my games as a dvd and says plz insert disc plz wb

Thank You

wat u mean

I'm telling you man just call them up and get a new one for free.Now that they gave a free extended warranty all you do is call them up and say you have the three red rings, they'll send you a box to mail it in, send it off and in a couple of weeks you'll have a new 360 at no charge.

Don't worry about it. It involves smart ass comments... and ninjas.
Do what Freak said.

From what I understand , the problem is with a V-chip. My sons X-Box 360 just experienced its first "red ring of death" so we went on line in search of a solution and found videos about "the towel trick". You turn on the 360 minus video and ethernet cable, wrap it in several towels and let it run for about 20 minutes. After 20 or so minutes unwrap, turn off and let it cool down for 15 minutes. His worked after 2 tries. I know it's a temporary fix but at least he should be able to play it until the shipping box arrives from X-Box. Some people are reporting a 1 week turn-around time on repairs. I'll keep my fingers crossed.