hmm, sounds like a 360 working exactly like it's designed to, badly.
[/cynacism]
Fo cereal tho, that's a pain in the arse. RhombusHatesYou is probably right, your disc drive is probably scratching game discs in heaven now.
In all honesty, I'm not a fanboy of PS3 or PC, tho I own both. Anyone who has a fuck-up with their console is a comrade to me, as my brother's old PS3 kicked the bucket about a year ago and my PC is still coughing up blood from the last virus it got.
To quote Yahtzee, "The Wii is a yappy energetic little thing, great with kids but a bit overbearing, the PS3 is a lumbering black beast that's a bit slow, but will always lovingly bring you your slippers each morning and the 360 is a grood all rounder that only occasionally pisses itself and dies."