As far as I can work out this is an inherent fault with this particular model. I have had two machines and both failed in the same way. The first machine lasted 3 months and it's replacement lasted over a year but has only recently suffered the same fate "Cannot Read This Disk". It doesn't matter what disk I put in the machine the error message is always the same.
I checked on-line and it turns out loads of people have the same complaint. Mine is out of warranty now so looks like I will have to buy another recorder and this time it won't be a Sony.
I have asked Sony about a replacement or even a good will gesture but they keep telling me it is the disk that is at fault - odd really because I have told them that no disks I put in will work but they just keep on saying it is a disk problem and refuse to acknowledge the problem is with the recorder itself.
I might write to the gadget show people .....
if anyone has found an easy fix for this problem, then I for one would love to know about it
Joe
January 2008