Microsoft has mostly recovered from the bad press of the dreaded "Red Ring of Death," but recently users have been seeing another error that also spells death for your system. This time, Microsoft is stepping out to take care of the problem sooner rather than later. Kotaku reports that the E74 error is now covered by Microsoft's 3-year warranty, and users who paid Microsoft for repairs to an E74 error will be reimbursed within 4-12 weeks. The error is basically the new face of the Red Ring, since it alerts users to the same symptoms and ultimately has the same result.
The error doesn't seem as pervasive as the famous RROD, and has gotten much less attention from the media at large. It's smart, at the very least, to get out in front of the problem before it catches too much attention. After the system briefly became associated with the Red Ring, it seems like Microsoft has learned from their mistakes.