It seems that the heatsink clips that hold the heatsink in place is the major problem. For more details :
Anyways after doing the research I stumbled across this forum http://forum.lowyat.net/ and they have a forum where Xbox 360 owners talk about almost anything, so the 3ROD issue was a pretty common topic. It seems that there are some guy out there who can fix the 3ROD problem with replacement washers, although it isn't a 100% fix it does work.
I contacted a guy named Virgil who is located somewhere in PJ. He managed to get it fixed and running after 3 days!. Kudos! The best part...it only cost RM100. Like I mention, it isn't a 100% fix and there are cases where the 3ROD still came back. So another workaround is assist cooling the 360 when it is in use. I'll update photos of the 2 Computer Chassis fans that I managed to put together that helps cooling the 360 a little later.