Yes, you would need to format the HDD.
It can't be just the BD laser if it is reading movies fine.
Did you also try the 1080p fix I posted above?
It would make me feel good if I save you $200. 
iPhone = Great gaming device. Don't agree? Who cares, because you're wrong.
Currently playing:
Final Fantasy VI (iOS), Final Fantasy: Record Keeper (iOS) & Dragon Quest V (iOS)

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