I proceeded to research online and found the mechanism that holds up the disc sometimes falls down to far because the gears are a bit off. So I realigned those and VIOLA! It worked I was so happy I shouted YES! and pissed off my wife.
I was so stoked I got the dang thing working I went to show my wife first thing the next morning...lo and behold the game booted Phew! So I went to switch to a burned game to show that those also now worked. And....it spit the damn thing out...so I tried other burned discs thinking I grabbed the wrong one...and eventually tried the legit disc to no avail
I officially am returning this beautiful system. It just pisses me off that I am going to have to get a fugly model 2 now
Just thought I would share my pain to others considering buying a model 1 sega cd on ebay. Sure it will work for a while, maybe a whole WEEK! but I am convinced that over time the majority (I am sure there are exceptions) of the model 1's will cease working. And you will be stuck like chuck with a pretty paper weight...