It cannot be fixed. Search the internet and you will see hundres of people had similar failures with the Cyberhome 1600 DVR. The components, especially the laser diode, are very poor quality made in Asia with no quality control. All the units will fail and cannot be repaired - many have tried. Cyberhome got sued much of its assets were seized for infringment in June 2006, and the company is now out of business, and the website is gone. Just throw it away.
Another Owner, March 2007