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You just need to stop the heat being taken at the back of the drive and you can do this with a good repair guide or you can send it in and they will fix it for you.
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Your disc may be scratched. Try a disc repair kit. If it's a known working game then there may be a defect with the firmware of the 360 which could require a factory reset of the console.
It seems your laser isn't reading the second layer on the games. Regular DVDs have only one layer of information, Xbox 360 games are "Dual Layered" meaning twice as much information in the same area. I would recommend buying a replacement laser from eBay and installing it yourself (as you already know how to take the Xbox apart)
if its all games its a drive error, if its only one its the disc, if its a drive error, hopefully youve got warranty, not sure if drives are locked to aconsole i.e. no straight swap from one to another,
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.............
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