Installed game that came with purchase wont play - insert disc??

and also.. the console was brand new, bought from a retail outlet.  

you buy the disc someone installed the game and then returned the disc

i doubt its brand new as it came with a preinstalled game

(that was installed with a disc)

only demos comes on a xbox 360 and if there is a special package deal the discs would come with it

either way even if they purchased the games on demand version you still need the original gamertag that purchased it meaning it was USED

take up the issue with the seller

they sold me a used 360.. not really happy with that.

I would not be either if they sold it as a brand new console. I would actually be furious.
Take the console back to the store (with receipt) and demand either replacement 'new' unit or your money returned.

You do not know the history of a pre owned console or if it has had issues or still covered bythe MS warranty, if something was to go wrong with it you could be hung out to dry and have to pay anywhere from $99 up to $120 for a repair.

I second that. If someone has done something dodgy to the console and the banhammer hasn't gotten around to them yet you're still liable.

the MFR date is 27/4/2011 so its pretty new, even if someone has returned it..

It had a gamertag on there with an avatar that was dressed up,

"player1" does a player1 gamertag already come on a new 360?

no they created a profile and rented or purchased a game

then installed the game to the hd  this still requires the disc to be in the drive

(probably a rental)

then decided not to like the system and return it

Games on demand games will not ask for discs

 either way take the issue up with the seller

 if the previous owner did anything to the console ms is not liable because you bought it used

 its buyer beware

(specially if the seals are broken)

im taking it back tomorrow.. im so mad about this.. i payed for a new system not a returned system.

took it back, got a new one.. this one doesnt have any profiles already on there or any games installed,

i wont be buying anything from that store again.