I too had the error3 fault and my cd player is also out of warranty. I wrote to Lexus with a small hope of them replacing it. They replied today with a big NO. Apparently the reason for the error3 fault is a disk jam, caused by
"incorrect loading of CDs, or loading CDs of poor quality such as copied ones"
They also tell me that
"Correct opperation of the unit is clearly detailed in the owner`s manual including a notice warning of the consequence of incorrect opperation".
So basicaly according to Lexus GB, all owners of an IS200 do not know how to operate their CD players correcly, and there is no common fault associated with the device. They have however made some minor modifications to the unit.
Thanks Lexus for such a fantastic car, shame about the audio system!