You can't be certain of what it is. It could be the solder out of place because of the heat, cpu failure, gpu failure, or it could be something else.
Contact Microsoft and see what they can do. Warranty here in Europe usually lasts 2-3 years. Not sure how long it lasts in the USA.

Actually that is quadrant one (learn your graphs now), and yes that is the infamous red ring of death. I'm pretty sure with that type of red ring, there is a lifetime warranty given by microsoft themselves. First I would check all the connections with the power supply if you haven't already done so. If everything looks how it should and you cant get it to work you should call 1-800-4-MY-XBOX or 1-800-469-9269. You will talk to a foreigner but its what you have to do, but they will eventually help you get it replaced, but be prepared for a long phone call and make sure you have the code from your xbox (the one on the inside of the front usb flap) ready. Tell them that you have already tried all the fixes and that you need a replacement. Again, if it is the three red rings it should be under warranty by microsoft.

Thank You, the upper right corner isn't red, doesn't that mean general hardware failure?

Hopefully, you didn't get a refurbished XBox. Anytime you get something that is refurbished, it is will be more likely to have problems later on. Getting it new is much better. Anyways, as long as the system is still under warranty, you shouldn't have any problems getting it fixed. Heck, they might even send you a new one if it's bad enough. xD

Whether or not it's out of warranty, contact Microsoft- they should be falling over themselves to make you happy, what with all the problems they've been having with the Xbox. Depending on the problem, they're likely to replace rather than repair- especially if it's an old model. The newest model fixes a lot of the reliability issues the earlier ones had- Microsoft are trying to phase these out as they break.

Whether or not it's out of warranty, contact Microsoft- they should be falling over themselves to make you happy, what with all the problems they've been having with the Xbox. Depending on the problem, they're likely to replace rather than repair- especially if it's an old model. The newest model fixes a lot of the reliability issues the earlier ones had- Microsoft are trying to phase these out as they break.

As I was saying before, refurbished models may be cheaper, but it's better to get newer systems. Aquw is right. More than likely, replacement would benefit both parties. Fixing it may just cause problems later on. It might be more economically advantageous for them and you to just give you a new one rather than deal with an old one. Can't hurt to call even if it was out of warranty, although I thought some companies will give a lifetime warranty for hardware occasionally. Not sure if Microsoft has anything like that, but I think they will take your XBox back regardless of warranty anyway like Aquw said.

Just called Microsoft, My warranty ended in February, I now have to pay $118 for a repair if I want it fixed

Contact them again and say that this is unreasonable. Make sure you say it wasn't your fault and that it's only JUST out of warranty. If they don't budge and insist you pay, ask for a cut-price replacement.