Well, I called tech support. After registering my console they found out it was still under warranty, so the repair is free. All I have to pay is to send the console to them.
In all honesty, I don't care if it takes a while. As long as its repaired and it doesn't cost me a dime I am more than happy. My nephew will get a 360 (don't worry, I'll register his as soon as he opens the box), so if I need to check anything I'll just pop my hard drive on the console and should be set.
Besides, all the games I asked for this Christmas are for Wii, so I should have something to play. *knocks on wood