I just received mine yesterday. Opened last night, took disc 1 out, flipped it over and it had circular scratches, more like gouges, about a half inch from the edge.
As expected, it failed 38 minutes into episode 2. Just did the exchange paperwork where I bought it online.
How annoying.
[edit] I should have also mentioned the discs were all inserted into the spindle lock things correctly, this was NOT a disc that got jostled around after it came loose. Disc 6 also had smaller scratches.