What this fix involves is nothing but mere screws and washers. Seriously, no overheating your console, adding new fans(although you can add them if you like), or towels. Ever since I installed it I haven't had the console freeze up once.
Step 1: Before we begin...
For starters, why would you need to repair the console yourself? If you have a working warranty, I highly suggest you send the console to Microsoft for repairs,as a repair will void your warranty. While Microsoft dropped the ball on product quality in efforts to get the 360 out before the other consoles, they picked up the proverbial dirt-covered ball by extending all warranties to 3 years.
If you plan on actually reviving the 360, don't use the towel trick. What it does is overheat the inside of the console by blocking fan intakes, temporarily doing something to make the 360 run for a brief period of hours to days. While it may be the quick and easy approach, it also overheats every other component in the 360, which is never good. It can cause chips to fail, capacitors to dry out, release the magic smoke, and possibly spark a fire. So unless you hate your Xbox something fierce, don't do this.
And of course, if you're on your 4th Red Ringed Xbox 360, and are considering buying a PS3...
FIX IT, REGARDLESS OF WARRANTY!
I would hate to see someone give up the pinnacle of gaming due to a simple flaw, over a Blu-Ray player with gaming functionality.
So, if your warranty is void, or you're about to join the dark side of gaming, read on!