With the advent of the aforementioned PS3, I enabled blu-ray access on our netflix queue, which by the way has worked great for us the entire time we have been over here. After a phone call to set up our APO address, and bumping up to the 8 at a time plan to balance the long shipping times, we've had no complaints about Netflix's regular DVD service (streaming is another matter...we can't stream because our IP address comes from Kuwait...stupid movie studios and their stupid licensing rules). I can't remember the last damaged DVD we got from them.
Blu-ray, however, is another matter. Since I started blu-ray access about a month ago, I have received 3 cracked blu-ray disks. The first one wasn't noticeable til it got to a certain point on the disk, then it refused to play. I then looked closely and could discern the hairline fracture starting on the edge of the disc and running about a quarter of an inch directly towards the center.
Since then, I started checking each blu-ray disc as it comes in, and I have found and returned 2 more. The latest one was the worst: the crack was so pronounced that there is no way it could even have attempted to play.
I have returned the previous 2, but this 3rd one made up my mind: no more blu-ray from Netflix til they figure out a safer way to ship them. I cancelled the blu-ray access and called to politely complain (very nice customer service btw, located in Oregon!). I was informed they are working on a solution.