Microsoft long ago fessed up that the Xbox 360 was capable of scratching discs, and it even offered a (somewhat limited) exchange program for damaged games, but some recently unsealed documents from an ongoing lawsuit now suggest that the company was well aware of the issue for about as long as the console has been around. According to The Seattle Post-Intelligencer, Microsoft first discovered the problem in September or October of 2005, and it even went so far as to send a "team of engineers" to stores across the US to determine the best course of action. Apparently, they came up with three options, two of which proved to be impractical, and one of which (installing smal