tronied on 06 November 2008
I got an RROD on my 360 a while back. I took out all the leads and plugged them back in again, but the red lights still showed. It is my first system (an elite) which I owned for a year, and so wasn't really looking forward to send it back to Microsoft and losing my console for a couple of weeks. Anyway, I remember seeing a video on Youtube where several people found that if they tapped the 360 on the right side (with a hand or end of finger), it fixed the problem. I did the same thing, and it worked. I haven't had any issues since then and that was about 3 months ago.
It might be worth trying this technique before you quickly wrap it up and send it back to Microsoft, or do the crazy thing and buy a new one.
