I have a SCH50002 console which was modded in 2004. I bought it off this guy on ebay.
Anyways long story short it plays ps2 backups np. just when I insert a original PSX game or back up it goes to the memory card screen and shows the disc as a playstation 2.
Now I've looked around before starting this thread.
I tried the old power off ps2 to red light, then press hold reset until blue light comes on then release and it should boot. but it does not.
To clean the laser on your PS2, you would need to open the console, unless you have a laser disc cleaner for PS2.
Once open, you use a Q-tip dipped in 'Rubbing Alcohol', not so its dripping but its wet.
Clean in a firmly circular motion for about 30 sec., then use the dry end and repeat the procedure.
If you have a can of compressed air, clean under the laser also.