I got an Xbox for Christmas. (yay!) My brother lent me his copy of Halo, which is only slightly scuffed. My Xbox sometimes says that it is unreadable, though, typically when trying to load in a multiplayer level. I turn it off, then back on, and it loads the same level without complaint. It did this to me once also with my Steel Battalion disc, which is still in pristine mint condition. I haven't had any problems in the Halo single-player campaign.
Do I have a flaky DVD drive on my Xbox? Is the Xbox extremely sensitive to scratches on discs? Does anybody else get semi-frequent disc read errors like I have? And if my Xbox is substandard, can I do anything about it? (I don't know where it was purchased and don't have a receipt. I guess I could ask whether the gifter kept it...)