I agree, just got Tokyo Drift from Blockbuster Online, and it looks like a 5 year old DVD a kid played with. Worked fine (amazingly), but man it was scratched horrible.
Wanted to add that I have had no problems with the Matador, Clerks II, & Lucky # Slevin. I have used them on an HD-D1, HD-XA1, & the 360 drive. Both Toshibas are on firmware 2.0 and my 360 is always hooked up to live so whatever updates there has been I have.
I have also been lucky so far with Netflix HD-DVDs.