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The open tray and unplayable disc is because the lens isn't strong on the drive and needs to have a Pot calibration done to it to make the lens signal stronger. That should fix the open tray/unplayable disc issue. I have done this to quite a few drives and all have been working fine since.
Though i fixed the Disc Read Error myself within anhour but please test the below method at your OWN Risk. Please alsonote that microsoft is no longer providing Extended warranty for E74Error.
Check out this DIY Video Guide,that explains step by step instructions to fix Disc Read Error yourselfwithin an hour. It also provides the money back guarantee in case youare not satisfied. As i fixed my Xbox myself so i thought to share itwith you guys.............
The DVD rom is probably on its last legs. Call support and see what they can do for you. I don't think this is covered under the extended warranties, and it will probably cost you money to fix if its is out of warranty.
Mine did this to me and I am in the middle of trying to repair it myself.
My suggestion is put it in a enclosed cabinet so that it overheats and redrings so you can send it back.