QUOTE(ph33rzie @ May 18 2012, 05:22 PM)

ahhhh well figures my luck...guess I will have to find someone local who can RGHd (2.0) for me then lol oh well though I guess that's what I get for trying to be cheap ...

Yeah =/
It could be the spindle motor, but with everything else you described, it sounds like its just mismatched keys. And usually if its the spindle motor, it wouldn't even spin it fast enough to read it as a regular DVD. Plus in my experience, spindle motors don't die often, but I guess that is an older drive. If you want to be able to play on Live safely (assuming you arent already banned), you'll want to put the model DVD drive in that the system was shipped with.
I know a guy over at se7ensins that does dvd key recovery for 25 bucks + shipping. I'd say that's the best deal you're gonna get for the service.