Came to this thread almost by mistake after planning to abandon my XC-L7 to whatever e-bay would offer. When 13 months old (ages ago, obviously) the laser 'failed' and was replaced at £150, then failed again 18 months after that and I gave up on it. I wish this thread had existed then!
Simon's 'fix' works really well and the unit's back up and running now in the spare room.
It's worth pointing out that removing the main board is made easier if you remove two black screws from the upper-right of the backplate that are NOT indicated by arrows, also unscrew the headphone socket (jack) from the front. When I had done that I didn't need to disconnect the side boards and that made it much easier!
Thanks so much!
Cuthbert Bear, February 2012