Microsoft extends the warranty on the Xbox 360 acknowledging the new hardware terror: E74. From their support page:

“… we are aware that a very small percentage of our customers have reported receiving an error that displays ‘E74′ on their screen. After investigating the issue, we have determined that the E74 error message can indicate the general hardware failure that is associated with three flashing red lights error on the console. … Microsoft will refund to customers the amount paid for an out of warranty repair due to a general hardware failure associated with the E74 error message.”