My xbox will play movies but when it comes to

A drive that will play DVD movies but not Xbox 360 game discs has been set up incorrectly at the factory. The only solution is to return the Xbox 360 and specifically note the problem so the drive can be repaired or replaced.

http://www.biline.ca/360_mod.htm

Flash your 360 drive with a custom firmware and then you can play any region of any game or dvd movie

The problem you are facing is of a copied Xbox 360 game you are probably trying to play on a Genuine Xbox 360, these discs are read as a movie disk and it shows as "Play DVD".

When you try to play such discs, it would give you dvd media control bar on the bottom and the message in chinese letters is actually a message asking you to insert this disc in a Xbox 360, which is actually a Modded Xbox 360 that is required

You will get this error when your laser is in need of replacing. The other message you will get is open tray. If your system will play regular movie dvd's but not games then replace the laser. You can find them pretty cheap on ebay.

Insert the DVD into the Xbox DVD tray then close the tray.

There's really nothing special you need to do.

Hi. You need flash the firmware from the old drive to the new drive.

This is 99% always the case when your dvd drive is going out. You can find a replacement on ebay for under $15. Video tutorials can be found on youtube just by typing "xbox 360 laser replacement" Replace the laser and you won't have this problem anymore.

The DVD drives must match the motherboard that it came with. Unless you go through a very complicated re-flashing process. If the motherboard and DVD drive do not match, it will not play 360 games

a red light appears instead of green

What are you trying to play, DVD movie or a Xbox game?