You have the lights of death, but dont fear...just get in contact with xbox they will supposedly replace it for free, because its a defect...
Got this off XBOX.com
Xbox 360: Three red lights flash on the Ring of Light
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February 22, 2008
You see three lights on the Ring of Light (RoL) flash red on the front of your Xbox 360 console. The upper-right quadrant light is the only light that does not flash red.
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The three flashing red lights may indicate that your Xbox 360 console has experienced a hardware failure.
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If you suspect that you are experiencing this issue, you can submit a console-repair request online. However, before you submit your request, we ask that you first try the following two steps to verify that you are indeed experiencing this issue:
When you turn on the console, examine the light on the power supply. The power supply light should illuminate green even if the three lights on the Ring of Light flash red. If the power supply light is not green, please follow the steps that are listed in the following Microsoft Knowledge Base articles:
Xbox 360: The power supply light is red
Xbox 360: The power supply light is orange
Xbox 360: The power supply light is not illuminated
Turn off the console. Wait 10 seconds, and then turn on the console again to see whether the symptom occurs again.If your console continues to display the three flashing red lights, your console may have to be repaired. For information about how to start the repair process online, please visit http://www.xbox.com/support (http://www.xbox.com/support)
, and then click Console Repair? in the upper-right section of the Web page. Note
The online console repair service is currently not available in all countries or regions.
If you would rather contact Xbox Customer Support directly, please visit http://www.xbox.com/support/contact (http://www.xbox.com/support/contact)
for information about how to do this.