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Im afraid you have the yellow light of death. You can fix it yourself and void your warranty or send it into sony and IF you are still under warrenty get a replacement. If not then you'll have to wind up paying about $130. I fixed my ps3 by myself by purchasing thermal paste, a heat gun, and determination. guides to fixing it yourself can be found all over the internet like youtube.
Only way would be to open up the xbox 360, get the heatsinks off of the board and use a heatgun and reheat the two chips that are underneath the heatsinks that you take off.
Problem with the 360's is that they use crappy solder to put the video chips on the board and the solder underneath breaks apart after a while cause of the heat that is generated by the machine. Reheating the two video chips allows the solder to reflow properly and then you can turn on the machine and get video again.
S1byrne hey man sorry you have this problem I had the same exact issue. I actually fixed it myself. It is a problem with the mother board not the hard drive. The problem was fixed by reflowing the motherboard with a heat gun at 350 degrees C. listen by no means is the process easy but it worked and it took 9 hrs but eighty percent of units that have the yellow light get fixed by reflowing the motherboard.
Yes they will still fix it for you as their is test points on the board where they can check each part for faults as you told them their was 3 flashing lights they will know whats wrong with it anyway as this is for the tech guys to diagnose what fault it is the lights flashing 3 times will tell them the problem so dont worry they will fix it for you and they should give you warranty anyway so you will be ok
If it isn't working anyway then yes. If you have voided the warranty by opening the console - which I believe you need to do to flash the drives firmware - then they may reject it, but will still send it back. If the latter becomes the case, find a local game repair shop.