If it says 'Open Tray' that is different than saying the tray is open. That is telling you it can't recognise the disk and that you need to open the tray.
If it is an original disk, check that it is clean and shiny - no peanut butter and jelly! To clean it, wash it under the faucet then dry it by sliding in ONE DIRECTION on a clean dishcloth.
If the disk is a copy, it may be that the copy didn't work properly or the disk protection hasn't copied properly.
If it is neither of these, you have a faulty drive - this is a common fault with the Xbox 360. If it is in warranty, send it back to get repaired, otherwise you are up for the standard $99 fee to fix it.
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