So I have been playing MW3 but needed a break and thought I would go back to finish Rage and when I popped the game in there was an update. Now the game won't even boot up. Says "Disc Unreadable". I tried deleting and re-installing the game with the same results of "Disc Unreadable". Nothing wrong with the discs. All my other games work fine. Tried clearing the cache with no luck. The only thing that will let the game work is if I try running it without the HD in. I didn't find any corrupt files in the game files. Not really sure what to do? Any hope for me or should I just sell it?

Running without the HD ? Do you mean with the HD taken off the 360 or just the game not being installed to the harddrive?

I installed the update and played the game from disc 2 to see if they fixed the obsessive compulsive achievement not unlocking bug and it worked fine with an "old" save game.
But i haven't got Rage installed at the moment. Was running from the DVD.

As in the HD removed from the console.

What made you think removing the HD would help?