Don't listen to one tech support person.
Microsoft has been replacing incompatible Xbox 360s free of charge for many individuals. There have been stories and reports all over for this. Follow the links in this thread or the news stories. Call again. If tech support gives you trouble again, have the links and stories and Microsoft's OWN policy ready (it's on their site, stating they'll replace obsolete Xboxes incompatible with their new update).
Their own words:
"Following a recent update to our system software, we have become aware of an issue that is preventing a very small number of Xbox 360 owners from playing retail game discs. This issue manifests itself as a unique 'disc unreadable' or 'disc unsupported' error on the screen and is unrelated to our recent public beta. We are also able to detect this issue over Xbox LIVE and are proactively reaching out to customers that may be impacted to replace their console. Any Xbox 360 owners receiving this error are encouraged to contact us at www.xbox.com/support/contact so we can verify if the console has been impacted."
Microsoft has been replacing incompatible Xbox 360s free of charge for many individuals. There have been stories and reports all over for this. Follow the links in this thread or the news stories. Call again. If tech support gives you trouble again, have the links and stories and Microsoft's OWN policy ready (it's on their site, stating they'll replace obsolete Xboxes incompatible with their new update).
Their own words:
"Following a recent update to our system software, we have become aware of an issue that is preventing a very small number of Xbox 360 owners from playing retail game discs. This issue manifests itself as a unique 'disc unreadable' or 'disc unsupported' error on the screen and is unrelated to our recent public beta. We are also able to detect this issue over Xbox LIVE and are proactively reaching out to customers that may be impacted to replace their console. Any Xbox 360 owners receiving this error are encouraged to contact us at www.xbox.com/support/contact so we can verify if the console has been impacted."