I pushed a button that posted my above reply- it did not include all the info I wanted to post. So, here is the entire thing
I have an older iMac with a slot drive.
Up until I tried to make a bootable flash drive, I had not had any problems with scratched disks that became unreadable (just like described here!). My original OS X install disk was ruined to the point that it is unusable- the message I got was that I should clean the disk!
This also happened with my Snow Leopard upgrade disk.
I purchased another SL install disk, but, remembered that I have an Apple Protection Plan for this computer.
I called Apple, and, I have been working with an Apple tech who told me that he had not heard about slot drives damaging DVDs, and that he was prohibited by Apple from looking at any of the links I sent him from Internet forums (might bias his judgement?).
So far, I have run through an Apple install disk that he sent me, and now am waiting for a housecall to replace my "superdrive"- which he thinks will solve the problem!
I can duplicate the problem with CDs, and, have found that if you insert and remove the DVD/Cd very carefully- you may not damage it?
The tech has sent me another OS X SL disk (this is Apples full boat one!). I am waiting for a housecall to replace the drive tomorrow or the next day.
He told me that I could get a new computer from Apple if I had 2 more repairs like this on my computer!
When I eject a disk, it does not get out far enough to be able to use one finger in the hole and another on the edge of the disk to get it out of the computer. He said this was normal! You have to grab it on the edge with 2 fingers to pull it out. This is when I think the damage occurs!!! He sent me a link that he said showed the correct wayto remove a disk(
http://km.support.apple.com/library/APPLE/APPLECARE_ALLGEOS/TS2839/TS2839-2.mov )! Actually, it is about resetting a drive that does not eject disks, and actually damaged a disk when I tried it.
So, the newer slot drive Macs are not the only ones with this problem.
I will post a followup after the housecall.