Ok I put in the first disc and it came up with Disc read error. After a few times of trying, it worked with no problems with the exeption of it happening everytime I put the disc in.

Disc 2 freezes on cutscenes but can simply be fixed by resetting.

Disc 3 has Disc read error again. I cant be bothered resetting over and over again. I only have a memory card so uploading it on my 360 is out of the question.

Did anybody else have this problem and did you find a way to fix it?

I think your Xbox is breaking cause thats what happened to me before I got the red lights coming on check with a few other games to see if the same thing happen if so prepare to get your xbox serviced & a long 2 week wait yet they are much better then sony & you get a free 1 month gold xbox live card & also your xbox should be covered by a 3 year warranty.

What shadow is saying is most likely true. But I have noticed this game freezes more than others for some reason.
perhaps its the epic nature of the game. Oblivion froze alot on me also.