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What Jakuza said, depends on how long the warranty is and when you got it.
Also, some 360s just do that. If it was a used one, id say your only hope is to sell it on ebay or something. If you bought it from Gamestop or EB games, they can exchange it for another one for free. Otherwise, you might try cleaning the lens or something if your not afraid that it might damage the 360.
Sorry, thats all i can say, hope it helps.
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Call the MS support line it should be on the box or somthing
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There is a trick to wrap it around a towel but you can google it yourself if your gonna be ignorant.
