Actually my 360 is screwed up as well. I just filed a repair request. I thought it was 6 months, so I never checked, and it's been broke for about a month now, but then I found out it's a year and it's covered. They even ship it for free, which most places don't do. When my laptop fried, they fixed it for free, but I had to pay like 70 bucks for shipping.
Anyways, last month I went to play a game, and I put the game in, it said reading for about 4 secs then just said open tray. No matter what type of disc I put in, it just spun for a couple secs, and open tray pops up. There's no error messages, no red ring of death, nothing, no explaination given. In fact, everything else on my 360 works just beautifully, online stuff, all my downloaded games and shows/movies.
I think my drive is just burnt up. Maybe the eye that reads them is busted, or the gears that move the eye back and forth to read the disc is broke, or the gears that spin the discs. It could also be a soft/hardware problem that opens up the discs.
I tried cleaning the eye with a DVD cleaner disc, but it won't spin long enough to work. I took the faceplate and cover off and sprayed air into getting all the dust out. I even formatted my HDD, to see if there was a file or gamesave screwing it up which I've heard happens. Which didn't fix it, and I had no way of backing it up so I lost everything
Luckily XBox says they're gonna fix it so yay! It just sucks cause that's another month or two, and all I have is my Wii left. I love my Wii and the games, but there just isn't enough games of the genres I like.