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Hi try this method and see if it helps To reset the display settings of the Xbox 360 console to the default settings, follow these steps:
Remove any discs from the disc tray.
Turn the console off.
Turn the console on. Note If you are using an Xbox 360 Wireless Controller, turn the console on by using the Xbox Guide
button on the controller. Make sure that you use the player 1
controller when you do this. The player 1 controller will have the
upper-left quadrant light illuminated.
As the console starts, press and hold the Y button, and then pull the right trigger at the same time.
The Xbox Dashboard resets the display settings to the default settings, and then automatically restarts the console.
Please rate my answer if it was helpful cheers nikki
This i have seen before and it tells me the machines is displaying the signs of lead free solder failure (85%sure). you could strip the machine down and replacing the x-clamps at the same time do the heatgun fix if you dont have access to an IR oven.
and the other 15% it could be either the IR board (which the on/off is connected to) and to test this you would have to strip the 360 down and try a different one from one of your mates. you can buy them but i would try borrow one first. its all about elimination.