I found out on engadget that there is a way to fix the issue where frets aren’t working on the Les Paul XBOX 360 wireless guitar. If anyone else is having this problem too, here is a quick fix.

We’re not exactly sure if this problem is widespread, but for those currently dealing with malfunctioning frets on the new Guitar Hero III Les Paul, you should certainly give this a once over. An incredibly industrious gamer went out of his way to show us all what a few rubber bands and a 3M Utility Hook can do to solve your Guitar Hero blues, and if you haven’t already slammed your axe into the floor, lit it on fire, or ceremoniously bludgeoned your Xbox 360 in frustration, there’s hope for you still. This low-fi fix reportedly holds the connector plate in the neck and the pins in the body together more securely, enabling users to resume shredding sans trouble. Granted, this may not cure every single faulty axe out there, but it’s certainly worth a try. Go on, roll up your sleeves and hit the read link for an (immensely easy) walkthrough.

http://www.engadget.com/2007/11/01/low-fi-fix-for-malfunctioning-guitar-hero-iii-les-paul/