Sorry to hear this problem, This is one of the reasons that i tell people do not buy electrical goods such as DVD Players abroad as you have no comebacks if anything goes wrong.
The problem you are encountering is a read disc error now this could be any number of things. Mainly these problems develop through either faulty discs which have been exposed to magnetic fields or have some kind of damage actually within the disc, DVD's are more prone to damage then CD's.I know you state the discs are clean, but do they have any surface scratches or any soiled areas if not then you must have a problem with the laser. Do not operate this unit with the cover off as the Laser can do permanent damage to your eyesight! DVD players are very much like PS2 consoles they are very fragile and do not stand up to well to knocks! If this unit has been dropped or has been knocked hard there is a chance that the laser could have been damaged or knocked out of position although if the DVD is playing i doubt that this has happened. The only other matter is the guides for which the laser moves back and fourth. Be very careful not to wipe any of the lubricant from these guides but make sure that the laser itself is moving back and fourth freely but do not look directly at the laser! If there is any dirt on these guides and the laser sticks this will give you a freezing picture. If this is not the cause then you must either have some region problem or the laser itself is damaged. To replace this laser is not worth the hassle as it will cost you more to replace then it would to buy another portable.
In any case never buy Video camera's DVD Players, from abroad as you have no way of getting these items back if they go wrong.
I hope this helps.
Carlito Corway, November 2006