i had the same exact issue with a used copy of mortal kombat vs DC i bought recently it didnt really have any scratches either, i brought it back and exchanged it for the only other copy they had which had a couple small scratches yet worked perfectly fine
It sounds like the problem is the 360, not the disc. I mean, it's saying to put the disc in an Xbox 360. So the system is reading it as a DVD, not a game. I had the same problem with my old 360 but all my discs work fine with my S.
Why do people... betray one another? They might as well... all just die instead. Welcome to my kingdom!
I have a slim, only a few months old, and every other game works fine in it. It's just this one. The disc DOES have some heavy warping on it so I wonder if that's it. I'll try the install thing but if not then I'll be going to Gamestop tonight. I'm a regular there so I'll be more likely to be worked with probably. I don't hate Gamestop like others but it's true of anywhere that the more you go in the more likely the employees are gonna treat you better as a customer. Happens all the time at Starbucks and Subway around the place I work. :P
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