CD scratches? 2004 Prius

first post.. well, under this name, I forgot my old handle and my email has changed so I guess I'm starting over. My CD player in my 2004 Prius has been scratching discs for sometime now. Since it's at 85,000 miles I was considering taking it back to the Toyota dealership here in Wichita to have looked at. Has anybody had problems like this? I tried searching the forums but came up empty. The cd's have lines on them.. it's bad.. really bad. I have the base model so I'm wondering if I take it in for warrenty work if they could replace the CD player with one that would read mp3's. Thoughts? I enclosed pics to show what this is doing. I've given into burning a disc off and running it till it dies then burning off another cheapy. it's the only way I can listen to anything other than the 4 stations Wichita has to offer with decent music..