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Yeah, the Microsoft warranty was extended to 3 years for '3 red lights' problems, so your console should be covered - you can check by entering its serial number on xbox.com, and also use that website to order a repair. Of course, if your warranty seal is broken for any reason, then they probably won't repair it (you might get away with it, but usually they just return them if they see the seal is broken), and Microsoft do sometimes take quite a while getting them back to people.
So if your seal is broken, you're in a hurry or just fancy trying to repair it yourself, you want to try an X-Clamp replacement. Google for the method, check on xbox-scene.com, or I've written a guide that I could send you a link to. If you don't fancy doing it yourself there are people who offer repair services where you can courier your console back and forth and have them repair it.
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