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Well first off, make sure the disk if in PS1 OR PS2 format. That is what the PS2 Is requesting when it says "Please insert Playstation or Playstation 2 format disk. The Slim PS2 has various problems reading disk.(Don't Know why? I own it and Know it does). The Fat version(1st version) is a much better system, in my opionion. Try blowing air to clean the disk reader. Or changing the disk reader portion out, At a small price.
Check this Solutions, Check temp of console, if ok continue:
Check the disc is Scratch, if ok continue:
Check the Laser is funcion, try a dvd, cd or ps1 game, if ok continue:
Check the Laser aligning up.
if your console is slim-pstwo, you have bad laser & need replacement with new laser. for ps2 chubby You can attempt to adjust it with the little white wheel, but this is not always successful. left for cd format & right for dvd format. hope this help.
the reason it makes the "grinding" noise is because the motor that moves the lens to read the disk is dieing, this generally happens when you have played your ps2 for a long time, this only happens to older consoles.