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If your console is still covered by Microsoft's warranty, you should be able to get it repaired for free or for a discount. You may receive a replacement console if it is damaged beyond repair. Visit devicesupport.microsoft.com/en-US to register your devices, check their warranty status, and request service. The Red Ring of Death (three red lights around the Power button) can indicate a variety of different hardware problems. Most of the time, it will be because the console has overheated and the board has warped, causing chips to lose contact. You can use the secondary error code to determine the exact cause:  While the console is on and the red lights are flashing, press and hold the Sync button on the front of the Xbox. While holding the Sync button, press and release the Eject button. Note the flashing lights that indicate the first digit. One light means the first digit is "1," two means "2," three means "3," and four means "0." Press the Eject button again to get the next digit. There are four digits total. Once you have a secondary code, you can look it up to see what your hardware problem is. You can find the code meanings at xbox-experts.com/errorcodes.php. This will list the known repairs that can fix the code, as well as point you to the proper parts and tools you'll need. Even if your console is out of warranty, it may be easier to have it repaired at the local electronics shop or hobbyist's garage than to try it yourself. Check Craigslist and local ads for Xbox 360 repair services. This is especially important if your Xbox needs to be reflowed, as this requires special equipment to do right. One of the most common replacement parts you'll need is an X-Clamp replacement. This is the piece that keeps the heatsink attached to the CPU, and getting a new one will keep things solidly in place. You'll also likely need new thermal paste to apply between the CPU and the heatsink. If you're replacing the clamps on the Xbox 360, you'll likely need a drill in order to install the larger replacement bolts. There are too many variations to list here, so look for a repair guide that matches your error code. You may need extra tools like a heat gun to reflow the solder. Different repairs will vary wildly in difficulty and required materials. Most repairs will require you to open your Xbox 360. This is a fairly complicated process, and is made easier with a special tool that is included in most repair kits. See Open an Xbox 360 for detailed instructions. You'll need to remove the DVD drive in order to get to the components underneath. Disconnect the two cables coming out of the back of the drive, then lift the drive up and out. The fan shroud unclick and can be set to the side. Remove the cable connecting the fans to the motherboard, then pry the fans out of their metal housing. If your Xbox is overheating, cleaning out the dust inside can make a big difference. Use a clean paintbrush to get dust out of the heatsinks, and a can of compressed air to blow dust out of crevasses. Remove the fans and carefully remove the dust from each blade using your brush. Don't blow fans with compressed air, as this can make the fans spin faster than they are designed to. This is the small logic board that is mounted vertically along the front of the open console. You'll need to use a spudger or flathead to pry the shield off, and then a Torx screwdriver to remove the three screws. There are nine gold Torx T10 screws and eight black Torx T8 screws. Your RRoD fix-it kit will likely include replacements for the eight T8 screws. You can lift the motherboard out from the front. Be careful to not let the motherboard fall out while turning the console over. If your repair calls for X clamp replacement, or you want to apply new thermal paste to the CPU heatsink, you'll need to remove the X clamps from the back of the motherboard.  Use a small flathead to pry the X clamp away from the retaining post until it pops out of the groove. Insert the flathead underneath the released clamp and then pry it completely off the post. Repeat for each corner of the clamp. You may have to apply a little force to break the seal of the old thermal paste. Ensure that you've cleaned off both the CPU and the heatsink surface so that none of the old paste remains. Apply a small drop of paste on the center of your Xbox 360 processor. The drop should be small, smaller than a pea. You don't need to spread it. If the drop is placed exactly in the center, it will spread automatically when the heatsink is installed. This covers the basics of cleaning the system, replacing the clamps, and applying new thermal paste. Refer to your repair guide to see what else you'll need to do to get your system fixed. This could include reflowing the solder that connects the chips to the motherboard, which is a complicated process.
Get your console repaired by Microsoft if it is still under warranty. Get a secondary error code. Determine what the code means. Click the "Details" link next to the code you get. Consider "professional" repair. Order the proper repair kit. Find a specific guide for the repair you are performing. Open your Xbox 360. Disconnect and remove the DVD drive. Remove the fan shroud and fans. Clean out the dust. Remove the RF module from the front of the console. Flip the console over and remove the screws holding the motherboard. Carefully turn the console back over and remove the motherboard. Pry the X clamps off the back of the motherboard. Pull the heatsink off of the CPU. Clean off the old thermal paste using rubbing alcohol. Apply new thermal paste. Follow any additional repair instructions.