I just decided to run down to the local BestBuy and pick up a new BD drive.
Ended up with the LG BH12 and all problems were fixed. Everything (even BDs the old one previously never could read) is playing flawlessly.
No clue why it just decided to be extremly picky and tempermental, but something was obviously wrong with it.
As far as the new one goes, the BH12, it seems nice so far. Its certainly quieter than my old one ever was, and it seems to start playback a bit faster. but that part could just be me.
Haven't tried burning anything with it yet, but hopefully its DVD and DVD-DL burn speeds are good.
Look forward to trying out a BluRay burn soon as well.