The problem is the Optical Pick Up Assembly, Sony part number A6062709A. The assembly is marked as a KHM-270AAA. The assembly includes the Optical pick up assembly, spindle and sled motors.
Mine just failed and I replaced it myself. I took a few photos if you need any. You can order the assembly for $76.15 + shipping and tax from http://servicesales.sel.sony.com/web/index.jsp
or
http://www.partstore.com/ProductDetail.aspx?ProductSKU=1878853
Sony has it in stock.
After you install it in it's bracket and hook up the short ribbon cables to it you will need to remove a blob of solder on the device as indicated by the instruction sheet that comes with it. You do this before installing the assembly into the DVD player. The Blob of solder shorts the laser diode connections insuring tha no static electricity buld up at these terminals during handling and shipping. The best way to remove the solder blob is by using a grounded soldering iron, and solder wick. Then be sure to use some alchol or acetone on something like a pipecleaner or Q-Tip to remove the left over flux so that there are no residual leakage paths for current to flow later.
I hope this helps.
vince@xmission.com
Vince
September 2005