It has two very short, very light scratches, but they aren't the problem.
The problem is only visible when held at the proper angle. Halo Reach is a dual-layer dvd. The layers are separating. My 360 (being the old model) can't read over the areas that are separating very well.
It's not an issue that can be fixed by buffing, but fortunately, not enough people understand the issue enough to identify it.