Hi, the problem you are having is caused by it over heating and whats happened is that the cpu and gpu chip has over heated, now if you have had it from new less than 3 years then this fault is covered by warranty so double check the date on the back of the xbox for any warranty you may have left.
if your warranty is out then i would avoid doing the towel trick as it can cause more harm than good as it melts the solder and may solve the problem for an hour or so but it wont last long.
the other option you have is to remove the x clamps that hold the heat sinks to the cpu and gpu chip how ever this isnt easy to do and it will require new heat sink paste and chemicals to remove the old heat sink, also you need to remove the x clamps and use special screws and spring washers so that the heat sinks are secure and allowing the cpu and gpu chip to cool properly.
if you have never done this before then its best you leave it to someone who has and pay them to do the repair.
i do the repair for 25 pound plus parts which usually comes to about 30 quid unless you have got the old style heat sinks then the price goes up to about 40 quid.
i only charge if the problem is solved and the xbox is in full working order, and say out of every 10 i do only 1 wont work so that is the risk you take it all depends on how bad the cpu and gpu chip are and if the solder holding them to the board has cracked due to the heat caused by over heating.
this should be repairable but you will need to find someone to do the work for you.
let me know if you need further assistance ok
plz rate this solution as i have a whole page on unrated posts thaks.
im in uk so if your near to me i could do the repair for you, but the chances are your in the USA and in that case its just not possible for me to do the work.
i live in canada and there is nobody who can do it here so i guess i sol
Hi you can buy the x clamp repair kit off the well known auction site and if you google xbox 360 repair guide and search through the listings you will find loads of sites that have videos and step by step instructions on the process and if you like i can email you the instructions as i do this repair for a living.
let me know if you get stuck and ill email you the guide, i wont be able to put it in my post on the site cuz the guide is to long, you will find one anyway on the new
good luck and take your time and if you do do it yourself then make sure you get the cleaner to remove the old heat sink paste from the cpu and gpu chip ok take your time and you should be ok
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