So, after reading the internet we do the towel trick (wrap it in towels and apparently it resets itself after overheating) and bingo, it starts working again after letting it cool down!
Therefore, there is absolutely nothing wrong with the xbox...if you search there are millions of people with the same problem...how crummy is that! There is nothing wrong with it!
Turns out, we can't send ours back for this particular fault but if you get 3 red lights then you can send it back to germany and they send you a new one.
[/rant]
Anyone else had similar problems?

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