OK. Here is the result of many hours of research. I had the same issue with my 506-20. The laser head wears out and causes these problems. You can get a new head for between $15-30 from e-bay. These heads are used in many cd juke boxes. The guy I got mine from was in Las Vegas see link info below. The transport is either a philips cdm 12.4 or 12.5 aka vam1205. The 12.5 has a ribbon cable coming from the motor since it is a hall effect drive, the 12.4 has a conventional 2 wire harness. It will be on a sticker on the transport anyway. Doesn't matter though since its just the laser head you need to replace.
Here is the info for you. http://cgi.ebay.com/2-Philips-CDM12-4-CDM-12-4-laser-optical-head-juke-etc_W0QQitemZ190355218050QQcmdZViewItemQQptZLH_DefaultDomain_0?hash=item2c520e1e82
Good luck. Mine worked fine after the laser replacement.
Here is the info for you. http://cgi.ebay.com/2-Philips-CDM12-4-CDM-12-4-laser-optical-head-juke-etc_W0QQitemZ190355218050QQcmdZViewItemQQptZLH_DefaultDomain_0?hash=item2c520e1e82
Good luck. Mine worked fine after the laser replacement.