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The 360 is broken!

This just sucks, I was in the middle of Fight night round 3 and doing a training session ready for my title match and there was a loud bang and the disk some how moved making it unreadable. I got a disk error of some sort. Turned it off for a while and watched peep show series 2. Went to play Fight night round 3 again and the game won't load. Makes a weird sound when trying to read the disk.

I was really enjoying Fight night round 3. The graphics are just amazing.

What am I meant to do? It's not even my 360 (it's brothers) I hope he doesn't get mad at me. Really hope he has the receipt. I don't even know if there is a warranty on these 360's. Has anyone else had a problem like this? and if so how did you get around it?