What's wrong with my Xbox....

You have an system error which needs to be sent into microsoft to fix. There is other solutions though, try going to your local video game store, or computer repair shop. Since the Xbox 360 is just a computer they might be able to fix it. In my city there is a few gaming shops that service 360's for a reasonable price. You could also do a google search for servicing a Xbox 360 and try fixing it yourself. Hope this helped you with your problem.