I haven't gotten the red rings (but my friend's one did and it was spectacular, knocks on wood) but from what people here said to me, the best option is to send it back to Microsoft but there is no need to worry since customer service is very excellent.
This happens to most 360's because of a design flaw. It may bug you but MS can easily fix it. The only problem you will have is for example, when you imported Rock Band 1 tracks, you will have to do the importing again since the imported songs are for one console only. It's a different case for every other files in your HDD (save files, DLC, etc.)
I won't recommend those X-clamp mods or towel tricks unless your warranty is out.