Yes, I have rented games before. I think it's particularly a good idea for when brand new games come out that you're not entirely convinced you'll like. There's nothing worse than spending $50-$60 on a game that you end up being less than thrilled about.
I've never run into any quality problems with a game I've rented... but then i haven't rented a TON, just a few here and there during those points where I was scraping change together to buy things.
If the discs are scratched, just use the banana cd scratch remover technique (search the forums if you need to watch the video tutorial). That method has yet to fail me.
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