Hmmm, your probably right. I couldnt see how a label would really affect the player from reading the cd... Then again, it still plays smooth non-labeled cd's perfectly.
Hmmm, I'm not sure about how the parts inside a Sony car cd player would work, do they spin from the top or the bottom? (they'd obviously read from the bottom). If it spins from the top, then the actual label is rubbing against a top surface, making the head slow down and causing the playback error... Sony is well known for their "cheap-ass" shortcuts in the making of electrical goods too, so maby its something to do with that?
Another wierd thing: After playing around with it, i noticed that (For example's sake) i skip to track 3 but it stuffs up and goes to the middle of track 2. If i hold down on fastforward and play all of track 2 fast and then let it play normal speed towards the end of track 2 - it goes to track 3 without any problems. funny stuff?
Anyway, its had a good run i guess. If all else fails, I'll take to it with a hammer and really see how this player works inside ;-)