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From what we've seen in unconfirmed reports on the Net, the problem comes from insufficient cooling for the GPU. This in turn causes the three red lights, which means you're going to have to send back your 360 to Microsoft and possibly get a dirty refurbished unit in return. If you're really, really lucky (and French), you'll get a unit with added cooling as well. – Jason Chen
Massive Failure Rate For Xbox 360 Exposed [Smarthouse]
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