Does not read dvd - Philips HTS3400/37 System

Your problem is that you bought a Phillips instead of a Sony.  Quality vs. Quantity my friend.
Anyways, your DVD player is set up to play region 1 and the disc you inserting is probably some other region.  Look on the back of the DVD case and it will say what region you can play the disc on.  Also, clean off all the smudge marks on the disc with some glass cleaner and this disc won't play if you got a lot of scratches on the thing.
If the above didn't help, then your fuc..d, cause your laser pickup is dirty or defective.  Run a DVD laser cleaning kit through it, which is available at all the big box stores.  See if that helps out any.  If not, then your truly fuc..d and you need to call the manufacturer if this thing is still under the 1 year warranty.  If your under 30 days, then just take it back to the store and exchange the thing out.