XBOX experts: What do you think caused this?

Keys

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I was playing Mile High Club on CoD4 from the Hard Drive when the screen shows some weird vertical static (Squares) and there's some really weird squeal from the speakers (like radio static) and the entire system locks up with the control still vibrating.

Is the Red Ring (or some other error) about to come knocking?

NOTE: I have had an E74 and 1 Red Light in the past but that was well over seven months ago and I've had no problems since (so it was dismissed as a glitch). This is a Falcon XBOX 360

I have also been hearing weird cracking noises from it but I put them down to heat expansion as its performance did not deteriorate and it's not everytime either but has been happening for months.

Initially I thought it was an internal hardware failure (GPU) but then another possibility crept into my mind, is it not possible that the Hard Drive just crashed and it's nothing to be worried about because I removed the game from Hard Drive, played it on disc and it was perfect?
 
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