The idea of claiming that the console has 3 red lights and getting it fixed for free are wrong, the techs at microsoft check out all faults, your problem is a burned out laser on the rom drive and microsoft will repair it for £65 with an extended warranty inclusive. This is good but your local computer repair shop will do it for half the price
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If you have recently tried to mod your Xbox 360 then you did not get the drive key installed correctly. Otherwise the laser lens is either dirty/ starting to weaken. You can either replace the laser lens in the disc drive, try to clean it, try the POT tweak or replace the whole disc drive. Keep in mind if you replace the disc drive you will need to swap the PCBs or the drive keys.
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One. Make sure the bar code on the band on the inner ring is perfectley clean and dusted. Two blow into the disc drive to make sure there is no dust on the laser. Three, get a professional to look at it such as a person at Game or at Gamestation. Four, try replacing the copy (NOT RECOMMENDED YOU COULD WASTE MONEY)