Your best bet is to go to the Official Xbox Repair Page support.xbox.com/.../repair-process sounds like your gonna have to send it to microsoft to be fixed.
***Xbox Ambassador Since 2012***
Hi there you can go here to try some disc tray Solutions to see if this will help please go this linksupport.xbox.com/.../disc-drive-solution If this does not help please proceed to DjDoubt03's link or contact Microsoft support. If you have not registered your console please do so before contacting support or requesting a repair via the support page.
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Before you set up a repair, trying unplugging everything from your console and plugging them back in. Red dot can be caused by anything connected to your Xbox.
Hey there, Seek Ghostly. Do you still need assistance? If so, definitely let us know and we'll be happy to help! Keep us posted. :)
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To Mister Darcy: Yes I still need help how can you help?