I HAVE 2 RED LIGHT NOT3 BUT 2 LIGHT - Microsoft Xbox 360 Console

1) try to lubricate the cable with approved lubricant, see for kinks or bends,burns
2) if the probllem is fix it .o.k but if not
3) you must replace the speedometer head
4)i am supposing that you change all sensors
God bless you

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how much

If you have a red light flashing then you have one of the following: 1 red light e74, 2 red lights - overheating, 3 red lights GPU and the CPU, or 4 red lights you need to plug the av cable in.

For the 1, 2 , 3 red lights you can send it in to get it fixed or reapair it yourself with a good guide

How may lights are showing up?

3 red light is GPU and the CPU overheating,

2 red lights is general overheating

1 red light is E74 and 4 red lights is the av cable.

For the 1, 2, 3, red lights you will need to get it fixed you can either send it in to do this or repair it yourself

How may red lights are flashing?

1 red light normally E74 error message on screen

2 red lights overheating

3 red lights the GPU and the CPU have overheated.

4 red lights is the AV cable not plugged in properly.

You can fix the 1, 2, 3, red lights yourself or send it in for a fix

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http://support.xbox.com/support/en/us/xbox360/hardware/default.aspx

Gees.. this symptom sounds like a loose part (a screw or cable end?) in the dvd-rom, get it back to the shop you buy and have it replaced if warranty still valid!
If you didn't dropped it and it came out of the box like that, it's definitely manufacturer's fault!

one red light is also the E71 error as well.