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My friend Jordan's 360 red ringed and still works fine. We were watching X-files, I was half a sleep and he was like "Oh fuck."
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I had this once, apparently there are different types of red rings. These ones weren't the dreaded RRoD, but three red rings when there is a problem with the 360's power source (power surge, shit like that). You can tell the difference between the red ring failures because the 3 lights are in different locations (can't remember off of the top of my head, but one is all but the bottom left are red, other is all but the bottom right etc)