Only reads dvds
I would try a System Update this seems to solve a lot of "Don't Play or Stops Playing" Issues.
On the PS3 go to the 2nd Row from the Left in the Crossbar (Menu)
Scroll up to the Top and click on Check for Update.
If not then i would check how you have the system hooked up and if it is allowing 1080i or 1080p to pass through to the TV.
Only Component (Red, Green, Blue cable) or HDMI will pass these signals to the TV!
DVD's are 480i which the Yellow, White and Red cable they give you will not show HD!
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