If the chip was improperly installed, it may. The only real way to determine if the mod is causing it is to see if you can disable the chip (holding power or eject down for 10 seconds on some chips) while others you can't. If you can find how to disable it, do so and try again with a game and DVD. If it still don't work or you can't disable the mod chip, remove the mod. What is funny here is it won't read DVDs. PS1 games are on regular CDs but DVDs and PS2 Games are on a DVD Format disc. ALso let me know if you want alternitives to a mod chip for functions like memory card formatting, and playing "fake" PS2 games (Downloads, DVD-R copies, etc.) This can be done without a modchip among other chip features. The only thing you CAN'T do is run home-brew apps. ALso is this an original PS2 (big, etc.) or one of the new skinny ones and did you install the Mod? Hope this helps, post again with results. nvic