The first option might be to go all out and buy a brand new xbox. After all, the prices have dropped, and it's only $299 for a brand new Xbox. One of the best benefits of the new Xbox 360's is the HDMI output, the older versions only had the HD Component cables which pretty much eliminates its coexistence with your cable box, so that you're forced to decide between killing your friends in Halo 3 in high definition, or watching the Jaguars whoop up on the Titans in HD.
Another bit of good news with buying a new 360 is that the hard drives are larger as well. Gone are the miniscule 20gb hard drives, now you can get 60gb with the Xbox basic, and 120gb with the elite. Not a bad upgrade at all.
Microsoft also claims that with the new Xbox 360s they've made some of the chips smaller which should reduce overheating. And it does appear that the first models that came out almost all failed while the newer versions have gotten quite good. We'll see if they really have licked the problem.
A second option might be to try to fix the 360 yourself. There are ebooks and video tutorials on how to fix the problem yourself. Of course if you don't have any experience in electronics then you most likely should not undertake to fix the problem yourself. However with multiple message boards and forums dealing specifically with this issue, you should be able to get going.
Third, and probably the safest bet is to send the console back to Microsoft. Just by calling them, they will send you a box to send the console in. It will cost roughly $140 to get Microsoft to make the repairs, however that's still quite a bit less than buying a whole new system.
Fourth, you could send it to an independent firm to fix it. These repairs run roughly $99 or more to get them fixed, although most of them at least have a 90 day warranty. It's definitely an option to consider.
There are plenty of choices to fix your ailing xbox 360. It depends on which choice you choose on what your results may be. It's worth it though based upon the excellent quality of gaming we can get on the 360. Now if there were only a way to get a blueray drive on the 360.
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