Well, my Xbox 360 has suddenly decided that it no longer wants to work.

On Monday (labor day), the thing decides it doesn't want me signing in, so I delete my profile and re-download it. No big deal. No comes the kicker:

As of Today, It keeps wanting to do an update, and then goes to tell me "Error, can't connect to hard drive" or some crap like that, and gives me an error code. I look up the code on Microsoft's horrendus site, and try using the troubleshooting techniques the reccomend for this certain code. Needless to say, they don't work. My Hard Drive is fine, I can see it on the memory options screen. So the next thing that I have concluded was that it is something wrong with the machine itself, probably with the processor. It's an Older "elite" Model, which has been refurbished That I've had for Two years.

So what do I do. I know it's a hardware issue, but I have no way to fix it.

I assume your warranty has ended.
I've had great success with a local Xbox repair business. There's probably one where you live too.
They have seen every problem possible, and will likely troubleshoot the problem with you for free, so they can access exactly what's wrong just over the phone.

Notice: this information may not solve the problem.

I've heard others with the same problem, and I've read some do this:

Power off the console.

Remove the drive.

Power on the console.

If you receive the same warning, the console needs repair.

If you do not receive a warning, restore the HDD (power off first).

If the error persists, it's a fault on the unit. Try formatting the entire drive to see if the error clears itself. If it does not, you'll need a new HDD.

Just because the console can see the HDD doesn't mean there isn't a fault on the drive. Bad sectors can prevent the console from reading/writing even though it can see it.

Hope this helps.

The hard drive could be corrupted. Turn on a game with the hard drive in and then without the hard drive in. If it fails to work the first time, but then works the second time it is likely the harddrive that is the problem. When this happened to me I was just out of luck and had to trash the thing, fortunately this was around when I first got the Xbox so I didn't have much data on the thing. You might be able to take it somewhere and they can find the corrupted file(s) and remove them.