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From Nema Wiki

Whats Up With the Xbox 360 Power Unit

Has your xbox 360 power supply suddenly gone from a solid green colour to a flashing orange? Obviously you'll no doubt need to know just what this means right, well the official line from Microsoft is the xbox 360 console is overheating and could have to be sent to an xbox repair centre. Microsoft denies that there are any �systemic issues� with console units.

Even though the xbox 360 console power has its own dedicated internal cooling fans it seems this isn�t efficiently attracting enough cool air to complete the job it had been meant for. Whenever you take into account the noise the xbox 360 console power generates from the internal fans you would think the chances of it overheating could be quit slim. Don�t Panic if you do obtain the flashing orange light though, there are some things you can do to avoid this from happening to begin with.

XBox Slim Power Supply

   Make certain to leave plenty room round the Xbox 360 console Power when setting up the body. If the external air vents aren't blocked the ability supplys two internal fans can attract the maximuim air flow.
   If you can put the Power Supply in a place from other causes of heat.
   Do 't be lured to stack other electrical devices on top of the power supply unit, this will defenitly enhance the tempiture from the unit.
   Avoid placing the system on thick carpet, try keeping it on a solid surface.

Don�t obtain the Xbox 360 console Power problem confused with one other issue associated with the Xbox which is sometimes called the �red ring of death�. This fault involves the console unit itself and never the ability supply unit. The �red ring of death� is also referred to as the � xbox 360 console three red lights� fault and �the red ring of fire�. If you keep having issues with your Xbox freezing and crashing after ensuring the PSU is well ventilated, a minimum of you have now ruled out PSU because the cause of your problems.