I have just the same problem................LG GSA-4163B that is almost 12 months old, have just flashed the fireware to ver. 105A to try and fix the problem without any success. The only way I can get it to read dvd-rw is to put a cd-rw in, erase it, take it out and put the dvd-rw back in and it works once or twice then I have the blinking light again with nothing happening.........lights are on, no one at home.
I've formatted the HD (several times :o(( ), reloaded just the software that I had on the computer before the troubles started, still not joy. Yesterday I burnt quite a few dvd-r's without a hiccough. Doesn't matter which software I use, Nero, Sonic, VSO whatever I can get off the net, they all tell me there's no disk in the drive......until I erase a cd-rw that seems to "unstick" it.......briefly..........came very close to hurling the lot out the window..........Wendy
P.S. I did try the same disks on another computer and they work just fine, no problems with the disks.....one of them is very new, the others have been erased a few times.