The E74 error is caused when the "ANA" image scaler chip fails, overheats or there is serious AV connection problem. The hot air flow from the CPU and GPU goes right over the location of the ANA chip so it might be slowly cooked by normal use.
An Xbox 360 that is suffering an E74 error will have the lower-right quadrant of the Ring of Light flash on the front on the console and a multiple languages error message may display that will read "E74. System Error. Contact Xbox Customer Support." or the screen will simply glitch out and display a feild of video snow.
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