There are several ways to actually avoid this error and be able to resume your normal gaming activities. Make sure that you are playing in a cool room, usually above the normal recommended room temperature. You can also give your Xbox 360 a rest every 6-8 hours of use so that the console would be able to let off the heat that surpasses it. Choose to save your game rather than pause it and leave it hanging on to avoid the overheating occurrence of your console. Make it a habit that you don't overuse your console if you want to prolong its life. It may be difficult, but it is also nice if you read on the reference guide of the console while giving it a rest or endure on other gaming consoles before using your Xbox 360 again.
Fixing problems with Xbox 360 console gives you the challenge that you can repair and fix the box by yourself. More solutions and guides absolutely free in this site
You are not alone with the e74 error and a lot of people have been finding out ways to be able to fix this problem. It generally points that the error is situated on the chip that overheated and to be able to avoid this problem, you have to provide proper ways in taking care of your game console.
Remember, when the Xbox 360 one red light e74 error hits you, you have only a few options left to choose from. Either ship off the product to the Microsoft and have it exchanged or if it is under the warranty period or you can fixed it on your own. Access the site http://www.xboxredlight.com/