The towel trick is rubbish man... too dangerous for your xbox! You were very lucky it didn't get any damage and your got your problem fixed.
Anyway, the solution for E74 is simple and needs basic equipment and skills. Follow llama's tutorial http://llamma.com/xbox360/repair/ring_of_l...x-clamp_fix.htm
to make the x-clamp fix if you didn't do it allready, and "bake" the xbox as it is said ont he tutorial.
If that doesn't work, you must use heatgun on HANA/ANA chip.