I just tried the heat gun trick on my 360, and it worked pretty good. The console will now boot and make it to the dashboard. I haven't tried any games, just geometry wars.
However, everything has a 1-2 second delay to it. The speed of the console seems to be fine (geometry wars) but in the dashboard or in the game when you move right or left to switch menus, from the time you click right or left it takes a second or two before the screen reacts. WTF
Wireless and wired controllers both act the same.
I was ecstatic that it booted, but then this laggy crap got me disappointed again. Anyone got an idea I could try? I've done the heatgun method twice, and covered up all plastic components on the motherboard. Both times I did use the heatgun on the CPU and GPU, so that's something that most people don't do, it seems.
360 Runs Slow After Heatgun Trick
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