I have been around this problem several times.
The second time it refused a commercial DVD I put the thing in for repair.... Just as you said £120.
As time passes the frequency of refusal is increasing, not I believe due to degradation of the optics or system but due to the fact that more is being squeezed onto DVDs.
I read elsewhere that a guy had the player returned to him by Panasonic with an offending commercial disk that they reported as 'Not within DVD standard'.
I can consistently play DVD-R disks that have the Ritek G03 purple dye medium, yet certain brand new disks out of the shop fail...... says software problem to me.
Richard, October 2006