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
howtomendit.com for free repair help, information and advice.
Try fixfault.com to fix in-car audio.