I returned the CD and got another copy but now it is making funny noises again, is it supposed to do this?
Is the new disc also scratched after having it in that drive? Some drives may have issues with the discs (they use a newer pressing method or something, IIRC), but it sounds like yours is taking things a step further and actually damaging them in its attempts to read them.
If you have fast internet, you can just skip the disc entirely and download the game via Stardock Central or Impulse, as well.