Suggestion:
It is a general hardware failure code frequently referred to as the Red Ring of Death. It could have many causes. The best thing you can do is send it in to Microsoft for repair/replacement. The warranty for that issue was extended to 3 years. Call 1-800-4-my-xbox to set it up.
Some people may tell you to do the towel trick. DO NOT! It is at best a very temporary fix (a couple of weeks maybe), will void warranties, and does additional damage to the xbox.
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