DVD bug

Ensure that your DVD isn't scratched up, and it is from the same region as the Xbox 360 you purchased (e.g. use a US-bought DVD movie on a US-bought Xbox 360).

Try unplugging and replugging your HDMI cable, if you have your Xbox 360 connected via HDMI for sound and video. I'm wondering if this is an HDCP-related issue. If available, try connecting to your TV with the analog A/V connector, which would end in the
RCA-composite (red/yellow/white) or component (red/green/blue) connectors, and see if you have the same issue.

You can read more about DVD issues here: https://support.xbox.com/en-US/xbox-360/console/movies

Disc troubleshooter guide can be found here: https://support.xbox.com/en-US/xbox-360/console/disc-drive-solution

I've heard rumours saying theres a bug that causes the textures to go low res if you install it. You should probably play it on the dvd till this is adressed.

I have had a similar problem in north America however it only happens with DVDs, not Blu-ray’s, and it doesn’t happen with every DVD, just certain ones.

Essentially it’s the same thing though the Blu-ray player app will acknowledge that it’s a DTS stream yet it’s passing it through to my receiver as a Dolby digital signal.

As I said before I have checked many DVDs and this glitch happens with some yet not others. Very strange bug

The better performance from having the game stream from 2 devices is NOT A BUG. If some data streams in from the HDD, and some streams in from the DVD or a USB drive, the system can achieve greater data bandwidth. If you force the system to stream everything
from a single device (the HDD), performance suffers significantly.

Again, this problem is not a bug. I like my DVD drive to stop spinning and grinding too, so I installed the Play disc to a Kingston 16GB USB drive (and the Install disc to the HDD). Works like a charm.

1. I generally have HDMI Atmos selected, but it shouldn't matter which of these options I use for DVD's. DVD's should output in whatever format I select from within the DVD menus.
   
2. Even if I set the Xbox's General Audio to DTS Digital Surround, I cannot get the DVD to output DTS Digital Surround. Instead, the DVD outputs Dolby Digital 5.1. However, outside the DVD app, the Xbox will output in DTS Digital Surround.
   
3. My Xbox goes directly to the receiver with an HDMI cable. I am not going to the TV before going to the receiver.
   

This is a very easy issue to reproduce. Put a DVD in the Xbox that has a DTS Digital Surround track. I have never seen this format on Blu-rays. Generally, it is only on higher end DVD's. Select the DTS Digital Surround track from the DVD menus. Play the movie and look on the audio receiver to see that the movie outputs Dolby Digital 5.1, instead of the expected DTS Digital Surround. This really seems like a bug with the Xbox's Blu-ray player app.