If you ask a professional they will likely tell you that the unit needs to be replaced. Our in-dash 6-CD changer in our 2000 Camry had the same issue. I had already downloaded the installation instructions from installdr.com when I came across someone mentioning their unscientific approach: While the CD player is trying to recognize the CD and you hear a lot of activity in your CD changer, hit the dashboard medium to hard right above the CD player. Boy, was I happy to hear this CD player come alive again. It must have pushed the CD back into the right place and saved me 300 - 500. Good luck. And don't forget to come back and post your results, even if it didn't work.
Sven
October 2006