Alright you can call 1800 4MY XBOX then you will be connected to Microscoft and tell them tour problem and in a week thy will send you a box and they will have you ship it out and in about a week you will get a brand new XBOX 360 :-)
I am afraid that you may have the red ring of death. 3, I believe, is a major hardware failure. What you need to do is look online for the red ring of death and see if it is what your console looks like. If so, call MS and get support. They will send you a box and you will mail your 360 in, and within a month it will be back to normal. I believe this is the only way to fix the red ring of death.
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if it says " disc is unreadable" then u have to clean it, then restart ur console. and that happens to me all the time. just keep opening and closing ur disc tray untill it works. thats's what i do with modern warfare 2
i had this problem with my xbox and its due to either the laser or the magnet within the disc drive that holds the disc in place. the magnet may have come loose which mean u can either open the drive up to try and reposition it, or replace the drive all together. my suggestion would be to send the xbox to microsoft if under warranty or send it to a third party company to see if they can fix it. buying a new drive for your xbox involves some very complex firmware flashing which is not advised
I had the same problem but i sent it in. They said it was the eye reader error. Or the thing that reads the disc. Try buying a brand new game and try playing it. Alot of times when i have disc read errors i put the disc in where the xbox 360 part at the top goes in facing the xbox. Try that to see if it helps.
"A temporary solution" If u got the new xbox experience and enough HDD space, install game to HDD and then play from HDD. You'll probably have to send back to Microsoft eventually. Though make sure its only COD4 thats giving trouble, buy some disc cleaner and see if that helps
Microsoft Xbox have some common problem like red lights, E74 and Disc
Read Error. Microsoft is providing extended warranty for red lights
problem, Means you will have to spend some money in order to get this
problem repaired from Microsoft also you will have to wait for 3-4
weeks to get your Xbox back. There are many reasons disc read error can
occur in your Xbox like your disc might not be clean, laser might also
be dirty and many more common problem. I would suggest you to first
clean out the disc, you are using. If that don't solve the problem you
can also take the help of DIY guide available at Internet. I think you have got good no. of options to get your Xbox repaired, Choice is yours.