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Anyways, onto your problem. Normally if it is scratching your disks you should get a replacement XBox within a year from the place your bought it, would help if you kept the receipt.
Also. You did choose the correct console as the DVD playback in the PS2 is about as low a quality you can find in a DVD player. Also, I must say that if you bought a console on it playing DVD's you are really foolish. Buy a DVD player for DVD's. Not a console.
Looks like your argument just fell flat on it's face. No?
Expect the PS2.2, featuring nothing new but rounded corners and a different colour, to be out early next year.