OK, after battling with returned laser and damage shipping problems, I still have the same problem. I still see that activity icon on the top right hand of the screen and it doesn't go away after putting a blu ray movie or games. So far this is what happen and what I did.
1. Bought a PS3 from a friend with reading problem, it reads then freezing problem.
2. replaced the laser and got it working for just over a month.
3. screen starts flickering and freezing, then it stop reading. all i see is the activity icon on top right hand side.
4. Replace the laser again, again(damge from shipping), and again. Still the same, activity icon after inserting a disc.
I'm not sure if my laser is bad or not anymore, but the looks of it and the way it was packed, it sure looks like new. I removed the laser cover and turn the system on, the gear motor move the laser towards the from and the laser head moved up and down quickly, that's it. Insert a game...activity icon shows. I also remove the metal casing and watched the activity inside the drive. After inserting an audio or bluray movie, I see a RED lightshine for 1~2 second and the disc does not turn at all. PLEASE HELP!!!