Below is quote discussing on slim models:
Has anyone tested this recently or can confirm it works on an E model?I just tried to play my Hd DVD player and had the same issue. After an hour or so, I finally got it working. You have to go into settings, and enable 'auto play'. then insert your disk into the drive and it will start automatically. After that you can then turn auto play off again if you wish. Now when you go to the video/movie blade, you go into 'my video apps' and there will be a app that says 'HD-DVD" and thats how you play it from now on. This is the only way to get the app to show up.
We had one in my college house and the movies are dirt cheap on ebay. I've been thinking of getting into laser disc (for 10+ years

