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I have had this problem myself with my own Xbox 360. From my experience, I have noticed that the issue is usually caused due to the Xbox not being able to read the disc. This could be due to the laser inside the Xbox is dirty or damaged - or it could be the disc itself. I never attempted to repair this because I found that after about 5 or more tries, my Xbox was able to read the disc.
When you open the tray to put the disc in or to try and get the Xbox to read it, try rotating the disc a little bit and insert again.
If this doesn't work, you may need to contact Microsoft technical support for further assistance.
Disc drive is out, needs replaced, but inorder to replace it you must keep the original drive. You can either order one online and follow these instructions to do it ureself (recommended) or email email@example.com for a pricing for repair. http://www.llamma.com/xbox360/repair/xbox-360-repair.htm
You can try to Clean with dvd cleaning kits...if doesn´t work..the only way fix is to disassemble the 360 and force the dvd laser adjusting the micro pot...located under the laser unit..But you will loose warranty and I think that the best way is to send your game console to microsoft...what hurts is that $140,00 you can buy 02 or even 03 xbox drives on ebay. Choose the best way! Good Luck!