What's causing the 3 red lights?

The 3 red lights are a sign of "general hardware failure". It is indicated by 3 red lights or 3 red rings near power button. It occurs, when GPU (graphics processing unit) becomes loose. Why does it becomes loose? Because some asshole from Microsoft thought that using a smaller heat sink wouldnt cause a detrimental effect towards the machine. As you may know, GPU is fitted on motherboard, under the heat sink. Due to its reduced size, the mother board heats up easily, melting the soldering of the GPU. There you go, few facts before i go into details about some do's and dont's to repair your precious Xbox 360.

First,NEVER i repeat NEVER use the towel method!!
Itll just do more harm than good,trust me
Towel method is basically wrapping the towel around the 360 to let it heat up. This will weaken solder points and hopefully re-join broken connections. The problem with this method is that you have no control over what solder points are weakened and there is no way to prevent further damages caused by the heat.

Now,these are some videos that may help you guys to repair your Xbox. Credits to whoever the dude that made this video (not me fyi)

1. Taking your Xbox 360 apart



2. Repair your Xbox 360 part 1



3. Repair your xbox 360 part 2