The disc will not eject and the wii says to insert a disc

Try holding down the eject button for at least 10 seconds after turning on the console. If that doesn't work (or you've already tried that). Try the following steps.

1. Unplug Wii from power outlet.
2. Plug in Wii again.
3. Press power button.
4. Press Eject button for at least 10 seconds.
5. If the disc doesn't eject try holding down the power button for 10 seconds and then the eject button again.

If that fails then either return the console to exchange for a new one or contact Nintendo consumer support. Info follows:

Nintendo Consumer Service Contact Information:
Telephone: 1-800-255-3700
Email webform: http://www.nintendo.com/consumer/webform...

I wouldn't attempt to manually remove the disc (by trying to disassemble your Wii) as it may void your warranty. It could simply be a faulty console in which case Nintendo should replace it within 2 weeks (according to posts I've read). It seems to be a somewhat common problem.

If holding down the eject button doesn't work, there's really not much else you can do. Sometimes unplugging and replugging does the trick.

I've had problems with discs not ejecting and some combination of the steps I wrote above solved the problem.

It is possible that you inserted the disc incorrectly. That would account for the error message "Unable to read the disc" or "Disc could not be read." But it should've ejected on its own.

Before calling Nintendo Service you can also see if their Support site has any solutions. Try the link provided in the source.

Good luck.