My friend has a 360 that is scratching his discs. It's not because he has moved it, and he plays it on it's side (horizontal). It has destroyed about 10 of his games now, here is what it's doing to the discs:
Sorry the image isn't too good, but you see that spiral? that's what it's doing to the entire disc.
Just wondering if anyone has had this problem... I looked around and all I found was preventative steps, not really any fixes. I also heard about the protective skins that you put on the discs but I know that will screw up my drive. And I heard about foam buffers but that just sounds all bad.
When my 360 was scratching discs, I just used toothpaste to fix the discs. But, that obviously does not get rid of the problem. As stated, switch drives. Benq's are really good.