I was in the middle of Dead Space 2 when my screen went all pretty and colorful. I turned off the XBox and then turned it back on again and got the error message and the one red ring. I waited a day and tried it again and it worked for about 45 minutes before getting the error again.
So, doing a perfunctory google search for this problem, there are a ton of solutions and people making money off of selling these solutions. Is there a solution besides just buying a new 360 (as the cost to send it to Microsoft to get fixed would be the same)?