Yes, I can play CDs. The message I get from iTunes is "The attempt to burn a disc failed. The device failed to calibrate the laser power level for this media."
Mind you, before I upgraded to Leopard, I burned CDs as backup. And I posted this question several months ago, tried all of the zapping pram, etc., that everyone else suggested. A couple of times it worked for one album, then the same thing all over again. I should have known not to upgrade to Leopard for at least a year!
Barbara