
Apparently Microsoft did a bit of research into the situation--or saw that there was mounting pressure online about the frequency of these new E74 errors--and decided to do something about it. Today, the company announced that E74 is now covered by the same extended warranty that covers the old red ring hardware failures. Why? Because the E74 error can supposedly be triggered by the same general hardware failure that causes the rings. Whoops.
The good news is that anyone who has previously paid for repairs on an Xbox 360 that had gone E74 will be reimbursed. More details are available directly from Microsoft.