What is the best solution for the xbox 360 from freezing or unreadable disc?

If you are having a freezing problem it is usually the tell tale sign that your 360 is having problems with the GPU or DVD drive. Unreadable discs can be from dirty discs, or there are problems with the DVD drive. It sounds like your DVD drive is on the fritz though. You may want to contact Microsoft with your problem and hopefully your still under warranty. If you are within a year from purchase you should be good. You can contact them at 1-800-4MY-XBOX.