If it's not even recognizing a CD, yes, I'd say you have a defective unit.

If you have a "lens cleaner" disc it could be worth trying on the off-chance that some large (millimeter-sized) hunk of packaging material isn't sitting on the lens. Otherwise, I'd send it back.

Good Luck!

::::::: No disrespect to Axiom, but my favorite woofer is my yellow lab :::::::