Well, I went to play Guitar Hero 2 this morning, only to have it crap out on me.
I'm not sure really what went wrong. After signing on XBL it asked me to update my 360, so I let it do its thing. After the console started to reboot. 3 red lights. After letting it sit for 10 minutes I powered it up, yay it works but I did not have the HDD plugged in. So turned it off plugged in the HDD and powered it on. 3 red lights. I was able to get an error code of "0020" by holding the SYNC button in and hitting disk eject. "0020" has no official meaning, but according to some sites it may be overheating. So at the moment I'm letting my 360 cool down under an air vent, if it works I can jam, if not I will try the "Towel" technique that I posted below.
Please note that all of this started after the update that Microsoft released that was "supposed" to make the 360 compatible with the Guitar Hero IIIs wireless controller.
Wish me luck ;)