Disc read error... only with Arkham City

I got Arkham City for christmas, played a little. Now everytime I start up the 360 and select play game, it says "disc read error."

It only happens with this disc, and up till the point when I finally popped the disc out to inspect/clean it, it was pristine and hadn't left the console. Is this truly a disc error? Has anyone heard of any similar case.

I read on here that it's a issue with the newest xbox update. Not sure how true that is....

Edit: I have 3 xbox's. 2 of them here where I'm at now. One with the old dash and one with the new.
I have tested the game on both consoles, it loads just fine. Maybe it's a issue with certain consoles. I'd contact MS and see if they have any answers that they can give.

Thanks for the help guys.

To go on further, this is an Xbox S 4gb less than a year old so I hope it's not a laser issue... plus dark souls works fine. I have updated the firmware, but it played fine for three brief sessions; odd that it's having issues now.

And since it's a gift, I don't have the store as an option... I guess into the abyss of 'calling customer service' I go, atleast dark souls has prepared me for that.