Hi,
the three red lights indicate a common fault.
what happens is that after use of certain xbox 360`s the solder around the cpu starts to come away from the mainboard so a mod kit has been made which changes the clips on the x clamp to screws to give the heatsink a better connection to the cpu
there are many forums on the net who can give you simple step by step instructions on how to fix this problem.
also kits to repair this fault are available on ebay for about $20 max with instructions.
hope this helps
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