I was in the middle of playing with a few friends, when my display got messed up. There were a whole bunch of white lines going through the screen, with red pixel design things flying across it.
As it turns out, it’s my graphics processor that’s faulty. I put in my other game discs, and they had the same problem. Also of note is error code “E 74” along with a single red quadrant on some boot-ups. To rectify this temporarily, unplug all cables and storage devices, wait 20 minutes, then try again.
The problem here is not the disc! It’s the 360 itself, and you’ll have to send it in for repairs. Call 1-800-4MY-XBOX to schedule one.
If they cannot repair your XBOX in 48 hours, they hold onto it, but send you back a used or “Refurbished” console. I got one of these back and they absolutely suck. It freezes up all the time, and it’s more of a hassle than the one I had. When you call in, make an attempt to tell them you want YOUR 360 back, no matter the repair time.