The solution posted by mcdado WORKED FOR ME. I have an out-of-warranty mid 2010 mac mini that also, at some point, stopped accepting discs. It may have actually stopped back when udner warranty; I don't use the drive very often.
Since discovering the issue, I have crawled through so many discussion groups and posts, and was quite ready to give up and order a replacement drive. Finally this fixed it. And, yes mcdado, I agree: it sounds insane but it works.
I only wish Apple (and I called them minutes ago, just to balk at their offer of approx $200 for in-store repair) had some sort of queued response for people calling in with this issue, even if out of warranty. Apple, I am a great fan of your products... which is why I know you can do better. Today was not your best moment.