Well I finally got to buying my heat gun and frying the shenanigans out of my box (was funner and less stressful than I thought it would be). So after the 2 minute procedure, as described by modfreakz, I let the thing cool during dinner and then popped the heatsink back on and powered the naked mainboard + fan + dvd drive up. Two seconds later I was cursing for a good few minutes as the lights taunted me a new error code of 0001. So I looked down and I saw a yellow light on my power brick. At this point two options were going through my mind.
1: set up a camcorder and make another "I DESTROYED MY XBOX BY RUNNING IT OVER WITH A FORKLIFT" video on youtube.
2: put the POS back together and just cough up the dinero so MS can solve my problem.
Of course, as tempting as option 1 was in the heat of the moment, after cooling my temper down I realized how attached I had grown to the poor little bugger. So I began to put the thing back together so I can call MS and ship them the pile of heap tomorrow.
After slapping the board into the metal cage and screwing a couple tiny blackies in... I decided to try my luck once more. I inserted the DVD then the power and video cables and clicked the power button expecting the worst... First green...
probably the longest .5 seconds of my life
then RED SHIT GREEN YEAEWYQA!!@!
For some reason when the board was outside of the cage it didnt start up correctly due to a power issue... maybe it had to do with grounding, I dunno. All I know is I now have a working xbox 360 again! There is hope in my life again! Now the next test is to see how long this 'fix' lasts...