Xbox Disc Replacement Program still covers damaged Halo 3 Limited Edition discs
First reported in the NeoGAF discussion boards and now confirmed by other news outlets, an unknown number of Halo 3 Limited Edition and Essential Edition (not to be confused with the hefty Legendary Edition) game discs suffer varying degrees of scratches. In some cases the scratches could render the discs unreadable by Xbox 360 consoles.
The damage stems from poorly-designed packaging. Specifically, the disc tabs which are supposed to hold the game in place are not the standard seen in typical DVD cases, and in fact allow the DVD to become loose and toss about inside the case during shipping. The issue is currently limited to, well, the Limited and Essential Edition releases of Halo 3; both the "regular" and Legendary Editions had the good sense to utilize stardard DVD cases for game storage.
In a not-so-subtle gesture, Microsoft reminds all affected gamers that their Xbox Disc Replacement Program is applicable for damaged Halo 3 Limited/Essential Edition game discs:
If, for any reason, you have a damaged Microsoft Xbox 360 disc and like to replace it, please review the information below:NOTE: This program covers the Halo 3 Limited Edition Game Disc and Essentials Disc at no charge through 12/31/07.
This program only applies to games where Microsoft is the publisher, and is subject to availability. To check and see if your game is available for replacement, please review which Microsoft products currently fall under this program here.
At least this time you can't blame the Xbox 360 console for scratching game discs. :\

(Image source: Shacknews)
Or were they trying something fancy (non-standard, as it said), and it backfired?
In any case, at least they provide free replacement disks for a limited time...