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I've been having this problem as well. Not with just this one, but pretty much every Lego game save for Star Wars. I wonder if it has to do with the actual machine. I have the original 360, so I'm wondering if people still get this on the S model. Can anyone comment?
This sig will not change until something impossible happens. Started 10/9/05 Brawl FC: 2363-5458-1028 GamerTag/Wii Name/PSN: KNEVER
Mine is on the original. Ill walk you through my short trouble shooting. I pop the game in after playing the night before with out any problems. Game loads up then disc read error. I open tray, check for smudges or scratches. Nothing. So I install the game to HD. Load up again, same disc read error in the same spot. I go back to dash, clear cache, and try again. Everything works fine.
The Rodney Dangerfield of the POW... Formerly the GSB The Amazing Viper is your new board savior - MantleNotMouse
I have signed in without connecting to Xbox live. I have tried all the troubleshooting steps and all I can get to is the first screen before I get the disc unreadable error. Any new ideas that you have come across to get the game to work?