An update to Microsoft’s
support pages shows that the seemingly
rising number of E74 errors are now covered by the same three year warranty that covers the infamous Red Ring of Death.
After investigating the issue, we have determined that the E74 error message can indicate the general hardware failure that is associated with three flashing red lights error on the console. As a result, we have decided to cover repairs related to the E74 error message under our three-year warranty program for certain general hardware failures that was announced in July 2007
Both of the errors indicate some kind of hardware fault. People that have already paid out for an E74 repair should have their money refunded by the 1st of July.
Via:
Xbox.com forums