Answer:
Well, if u don't wanna send it to microsoft, u can fix it by urself. It's very easy! 2 months ago, I got the same problem as u, but my warranty has expired. So I found a repair guidebook. Finally I only used 40 minutes and fixed the problem. I think it will also help u! Good luck!
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Maybe but it may not stay fixed. Here are some links that may help. If not you can sell it or just beat the **** outve it and get a new one.
http://www.youtube.com/watch?v=XdmjdFlrESs&feature=related
http://www.youtube.com/watch?v=OVWmN7BTt2M&feature=related
Plus don't open your xbox if you have warranty because it will be void. You have a 3 year manufacturers warranty so call xbox up and they will fix it for you. Hope this helps fellow gamer.