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The e74 is an overheat issue. It's also know as the red ring of death (rrod). It is very, very common. The link above covers the entire disassemble and re-assemble of an xbox.. That is if you chose to go that route to repair.
If you have a local Gamestop, they may be able to repair it for a fee.
it might be the disk drive lens just inst reading. if you still have warrenty with microsoft call and tell them whats wrong. if not then it will be cheaper if you buy a new disk drive for your xbox 360 and have a game repair shop replace it or just take it to the game repair shop and they can tell you whats wrong for sure. but call microsoft first you have 3 year warrenty with microsoft depending around what time you purchesed your system.
theres a known problem with the hitashi dvd drive in the xbox 360.
the only solution to this is a home repair job, look up on youtube on how to do this, although this isnt recommended as it voids warranty.
so the best way is definitely just to ring microsoft and send ur console in for repair.