The Xbox 360 is a bug box, it has alot of bugs and glitches that can't be ironed out witha patch or something, just try to keep your discs clean and scratch free, still however the problem does occur it's because he Xbox 360 has a very precise laser reader, an early model that has been changed in newer consoles, the slightest problem with a disc can cause it to screw up.
I had his problem to, after around an hour I decided to fiddle with the wires at the back. I found out that on the AV cable there is a switch, it was on HD, my tv is a normal one... So just try to change the setting, or push the wires in more firmly. Usualy the 3 red lights mean that an image is not being sent to the tv meaning tht the wires are loose or on the wrong setting. If this doesn't help you could consider getting a new scart lead. Sorry if this doesn't help.
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