Want to know how to get a Xbox 360 for cheap? ( This is legit, not one of those online scams.) First thing you need to to is buy a broken 360 from Ebay. You must make sure it has the Red Ring of Death, and that it's warranty sticker is still intact. Here is a link for what you should search for.
Now once you get your system all you have to do is call Microsoft at 1-800-4Myxbox (1800-469-9269) At first when you get an automated voice asking if you have a problem with your console, choose Xbox 360. Now when it asks you what the problem is say none of these. If you say Red Ring of Death, he will just tell you how you can try and fix it. After you say "none of these" he will give you another list. Just say "none of these" again, and then you will get put on hold for a real person. I had to wait about ten minutes to talk to a real person. Now just tell the person on the phone you have a broken 360, with the three red lights. They might want to know when you bought the 360. On the back of the 360 there is the date it was manufactured. Just tell them you bought it few months after that date. Just don't tell them you bought it off of Ebay. When they ask for the serial number just read it off. When I called they asked me what color the light on the power brick was, if they ask you this you must say "green" if not they will tell you the problem is with your power brick.
After you get done with the phone call you should have a box sent to you in the mail. When you get it just ship back the 360 and in a little while you should have a working 360. One other thing you must remember is that a lot of the systems on Ebay come with nothing but the console so that means you must go out and buy the power brick, av cable, and anything else you want for your console.
Over all it will take some time but will save you money and also gives you the chance to really choose what you want to buy. So you won't be forced into buying what Microsoft says you should buy.
I got my 360 for $80 off of Ebay. Throw in another $60 for all the cables and power brick, $40 for the hard drive and you are looking at under $200 for the entire system!