I've heard of the towel method. Though I've heard you should use slightly damp towels, to keep it from lighting them on fire... 
The other option is to take it to walmart - they'll replace it with a new one, just keep your hard drive and such. Walmart, last I checked, does a replacement no matter how long, as long as its for the same item. My buddy went through 4 Xbox's, all from walmart. Eventually got a good one after about 2 years of them breaking every 6 months... 
I haven't had a problem with mine and have had it for a very long time. You will have to send it to Microsoft, usually takes upwards of a month. Its a terrible process, I know several people who have gone through it.
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-Craig
94 LSi 5spd Barcelona Red, 14Xk miles.
Full custom exhaust (Stebro cat-back, custom rest of the way forward) 8000K HID kit from Tom (SVXfiles), Energy Suspension front sway bar bushings, Non-Droopy visors, Race Concepts C/D + Dimpled Rotors, Axxis Ultimate pads,SS brake lines, Bontrager Works #009 (or something like that), stripped interior.
(up next) Full cage, fuel cell, 327 swap
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