Yep happened to me too... jammed, Err3 on display.
Spoke to a local dealer in OZ, and they mentioned it is a known fault.
The unit is a Fujitsu, and they [fujitsu] have a modification to fix it. The dealer will swap your unit out with a repaired one, and should be okay from then on.
It will be done under warranty, but because it is a "known" problem, they suggested it can be done for free even if just out of warranty too.
They will return your CDs, but takes a few weeks to get them back.