So the cd half of the system cannot be used in the current state correct?
Is the entire cd area assembly too low or just the spindle?
When you said you've tried switching housings, what all did you switch out? Did you try swapping another spindle in the same system or the entire cd area assembly or other?
I'd compare two spindles by themselves side to side if you haven't already to get some exact troubleshooting.
Is the spindle adjustable if you totally disassemble it? It has two screws on the top but I believe that's just to separate it from the black plastic shell that attaches it to the metal cd area assembly frame. I bet they're a bitch to totally disassemble without damaging them in the process.
I have noticed that there is a very small amount of play in the spindle if you pull up or push down for what that's worth.
Are the blue rubber feet that hold up the cd area assembly damaged at all?
Does the spindle seem like it will operate properly (besides the height issue)? (Does it spin at start up and not make any noises?)
Basically, the spindle itself it definitely the problem. Switching the laser carriage (the metal framing along with the motor and spindle) with another solves the problem for that unit, but still leaves the original laser unusable. The problem is that it is too low in the housing to spin the CD above the plastic. So yes, it spins, but scratches the disc all over the place.
I've tried to adjust the height before, but couldn't get the shaft to move within the motor. There is a bit of play, but it's at most 1/32". And removing those two screws is a royal bitch. I couldn't even get that metal disc that supports the CD off. Lined up the holes and I could remove the screws, but that was really hard.
Really want I need to know is if anyone here has ever disassembled the laser motor housing before.