here's the rest so you dont have to click(thanks jermy)
How to Avoid Hardware Problems
* Air it out. Many failures are attributed to the inadequate cooling system of early-model 360s, so anything you can do to give it an easier time will pay off. Make sure you put the console in a place with cool, steady airflow.
* Move it and lose it. Don't change the orientation of the console when it's running. The DVD drive's running gear isn't as well secured as it could be, so knocking over a vertically-standing console can cause the machinery to collide with the disc surface. Characteristic circular scratches are the result and are generally fatal for the game.
* Think new. Thanks to a well-publicized cooling system redesign, newer machines are less likely to suffer problems. Any console bought in the last six months or so should have much better chances of surviving.
Red Ring of Death: What to do
Is it a "real" red ring of death? Somewhat confusingly, the true red ring error only has three of the four quarters of the ring illuminated. If all four are lit up, you have a much simpler problem: your A/V cable is loose!
Enterprising 360 owners have discovered a homebrewed way to fix the problem, although it only works for a short period of time. It involves turning on your console, wrapping it tightly in a towel, and leaving it on for 20-25 minutes. This might void your warranty from Microsoft, so consider yourself warned.
If all else fails, hit up the Xbox web site to request a warranty repair. They'll send you a cardboard "coffin" for you to return your console and send back a fixed machine in a few weeks. The official warranty was extended to three years for this specific problem, so even launch-day 360s are technically still covered.