Basically the laser lens is busted... depending if you are still under warranty, the dealer should replace the unit. fixing this will probably cost you more than buying an after market unit if you no longer have warranty.
I have an '06 XL-7 and it had exact same issue... The dealer at first refused to replace under warranty because we used burnt CD's!!! after a letter and few calls to Suzuki Canada, it is now replaced...
blazer98, September 2009