Could be something as simple as the wrong settings on the TV/360. Also it could be an internal issue, generally associated with the (H) ANA chip (the chip responsible for E74) as it handles the video output. If it's not the settings, and if the console is under warranty send it in to MS. If not, find a reputable person to help you out.
In any case you will more than likely have an E74 console very, very soon.
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