So i read online that formatting my Xbox 360 120 gig Hard Drive can fix it from the disc read error bullshit, so i put the important stuff on my memory card, but i cant transfer my rights and video marketplace data. 

Is there any way to transfer that to my memory card? because i know if my account gets deleted my shit is gone for ever and i cant redownload it and im not repaying for the stuff i bought and ill get so mad ill end up trading my 360 in so please help me.

What disc read error bullshit?

I cant play any disc games if there installed on the HDD. I always get "please clean the disc" type shit

You can always recover gamertag. And just redownload all the stuff from your download histtory

But if my marketplace rights are deleted then dont i have to rebuy all the same stuff?

what do you mean? All this stuff should be tied to your gamertag, and should be downloadable once you want to get it 

You can redownlad them.
Also there is a program so you can transfer rights in the event of this.
I'll look it up.

Here.
Hope this helps
http://majornelson.com/archive/2008/06/26/content-license-transfer-tool-aka-the-drm-tool.aspx

Lets hope it works!

It'll work. I got a whole new 360 AND a whole new HDD. I used the transfer kit and had no problems after that. Some of my Arcade games had to be deleted and re-downloaded and some of my installed games had to be deleted and re-installed, though.