I remember back when my first Xbox 360 got the E74 error on the day my Xbox 360 died.  I had just gotten back from a golf trip and was still playing Bullet Witch.  The graphics looked crazy and only got worse until the day I just got the E74 message.  Back then the three red lights was still more internet chat than an actual epidemic.  I was a couple months out of the one year warranty so I ended up having to pay to get the console fixed.

Today Microsoft has announced that the E74 error will be given a three year warranty period.  This is probably pretty good news for most people that have had the E74 error.  I should be receiving a credit for the service I paid for to get that first 360 fixed by July 1st.  There is still a four month period to file a claim if I don't get reimbursed by Microsoft.  There were a couple blog posts about a wide spread of E74 errors occurring after the NXE was released.  Some wondered if the E74 was a replacement error for the three red rings.  Looks like Microsoft decided to hit this one head on instead of dragging their feet like they did with the red ring of death. 

Source: MajorNelson