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.
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Something is wrong with the disc drive,if u got a return plan on your xbox360 that would probably be your best bet
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