Apparently a new type of Red Ring of Death has occurred.  This one seems to revolve around the video.  Some people are complaining that there is also some visual interferance with their xbox, which may or may not lead to a new error that has the bottom right quadrant glowing red.

http://www.engadget.com/2009/03/20/poll-has-your-xbox-360-been-dealt-the-e74-error/